Investors Evaluate Walmart’s Competition with Amazon

Walmart has been dedicating significant resources to building up its online presence to compete with Amazon in the e-commerce arena. While making strides in certain areas such as online grocery pickup, Walmart has also faced setbacks and incurred losses. Despite expanding its online grocery pickup and delivery services in thousands of locations by the end of the third quarter, Walmart has experienced failures in ventures like launching apparel brands and specialized delivery services in upscale neighborhoods, resulting in approximately $2 billion in losses overall. The question now is when will Walmart turn a profit in this competitive landscape?

Analysts have mixed views on the matter. Some believe that Walmart, after enduring losses and gaining valuable experience and industry relationships, is in a position to seriously challenge Amazon this year, with a particular focus on its grocery delivery services. On the other hand, there are concerns about potential future losses, exacerbated by uncertainties surrounding the impact of the coronavirus due to Walmart’s reliance on Chinese-manufactured products.

For the fourth quarter, analysts are forecasting earnings of $1.44 per share on $142.54 billion in revenue, representing a 2.7% increase from the previous year. While these numbers indicate progress for Walmart, the timeline for achieving profitability amidst mounting losses remains uncertain.