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Walmart is capping off a big 2024 by being named Yahoo Finance's Company of the Year. The stock is up double digits this year, and its customer base is growing.
Walmart CFO John David Rainey says it was all part of the plan. "It's not an accident that almost 20% of our business is e-commerce now. It's not an accident that we're gaining share, and that's mostly coming from households that make more than a hundred thousand dollars a year. It's not an accident that we delivered over 4 billion items in the last year same day or next day. This is a part of our strategy."
One place Walmart (WMT) has invested heavily is in its online business. Rainey tells Yahoo Finance Executive Editor Brian Sozzi that some parts of the online business are making money, such as Sam's Club and its international business, but the US business isn't quite there yet. He's not worried, though, saying, "It's no longer a question of if, it's a matter of when," adding "There may be a period of time where we make money and then we invest a little bit more and then it begins to lose money. But all the pieces are in place to do that."
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Rainey is concerned about tariffs, noting that while the company will do what it can to keep prices low, "tariffs are going to be inflationary for customers."
Watch the video above to hear what Rainey says is "one of the underappreciated parts" of Walmart's business.
Click here to watch Walmart CEO Doug McMillon explain how the company is benefitting now from investments made pre-pandemic.
For more expert insight and the latest market action, click here.
This post was written by Stephanie Mikulich.
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