Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, August 12, 2016

Article Excerpt

WAL-MART STORES INC., $73.89, New York symbol WMT, is the world’s largest retailer, with 11,500 stores in 28 countries. This week, the company agreed to acquire online e-commerce website Jet.com. This business, which began operating in July 2015, sells a variety of products from over 2,400 retailers. Wal-Mart will pay $3.0 billion in cash when it completes the purchase by the end of 2016. It will also pay Jet.com’s owners $300.0 million in WMT stock over the next few years. To put those amounts in context, Wal-Mart earned $3.1 billion, or $0.98 a share, in the three months ended April 30, 2016. The company will continue to operate Jet.com as a separate business. However, that site’s expertise will help improve the performance of Wal-Mart’s main web portal. Jet.com’s software to minimize shipment and other costs should help the company keep its online prices low and increase its Internet sales. OUR RECOMMENDATION:…