It’s been a busy week at Walmart
The big news is that Walmart reached a deal with Paramount
It is a two-year deal that will give Walmart+ members access to Paramount streaming service It will start in September and is exclusive for 12 month. Walmart indicated that it has positive membership growth every month since its launch and the Wall Street Journal, who broke this story, says that a Morgan Stanley
Amazon has invested in development of Prime Video service including original programing and live sport. This is typical of all major entertainment companies and it is likely that Walmart will also prepare special programs.
Walmart projects 2022 fiscal year earnings to grow about 4.5%exclding divestitures. Domestic net sales are expected to be about 4%. The company raised their expectation for full year earnings from a decline of 11% to 13% to a decline of 9% to 11% due to better 2nd quarter performance. It is likely that this estimate will be raised again. I note, that inventory is 25% above last year, an indication that management prepared for a promotional fall season.
POSTSCRIPT: The Paramount deal is going to increase membership to Walmart. As indicated, the company will commence the service in September and we should see an increase in the Walmart+ membership. After all, Bob Hope is loved by everyone.
Source: https://www.forbes.com/sites/walterloeb/2022/08/16/walmart-reports-q2-earnings-and-will-stream-paramount-to-members/