Why Walmart Stock Prices Are Going Crazy: The Case for Zooming Out
Stock prices are soaring because Walmart has been selling more goods, including shoes, cars and furniture.
And they are rising because Walmart is selling so many of those things.
Here are five reasons why Walmart stock prices are skyrocketing.1.
Walmart Is Selling More Goods Because It Is Getting More of Them.
Walmart’s stock price is soaring because it is getting more of its goods.
The retailer has been buying more cars and appliances, and it’s also expanding its retail network.
Walmart has become the world’s largest consumer goods retailer and now it’s getting even bigger.2.
Walmart is Getting More Cars.
Walmart used to have one of the lowest car sales in the world.
In 2011, the company’s average retail car sales were only 3.2 million, or less than one percent of the global market.
Walmart got into the auto business because its competitors had long since stopped selling vehicles.
But as of July, the retailer sold a record 4.4 million cars, nearly two-thirds of the market.3.
Walmart Has Become the World’s Largest Auto Company.
Since 1999, Walmart has steadily grown its global retail business, expanding its stores from 6,000 to nearly 19,000, according to the company.
Its retail arm also sold more than $300 billion worth of vehicles in 2013.4.
Walmart Sales Are Going To Increase.
In 2013, Walmart’s sales were up 5.6 percent over 2012, according the company, thanks to a surge in the number of people shopping online.5.
Walmart Stock Price Is Going Crazy Because Its Earnings Are Going to Grow.
Walmart stock prices aren’t going to be this high because its earnings are going to go up.
The company’s profit margin has been growing faster than its sales for years.
Walmart stock was up by 9.9 percent last year, according a report from Morningstar.
But that gain has been driven mostly by rising profit on its stock-based compensation plans.