Trading Walmart Stock on Netflix & Roblox Holiday Offering

November 01, 2022 18:25

As we move into the last few months of the year, retailers are gearing up for their busiest time of year – the holiday season.  

The world’s biggest retailer, Walmart, is already trying to attract more customers this season with new partnerships with Netflix and Roblox.  

Learn more below and how to trade Walmart stock.

Stock: Walmart
Symbol for Invest.MT5 Account: WMT
Date of Idea: 1 Nov 2022
Time Line: 1 - 6 months
Entry Level: $143.00
Target Level: $165.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Walmart Gears up for the Holiday Season

Walmart has started early in trying to generate more sales for the all-important holiday season. It’s the last opportunity for retailers to boost company earnings before the new year and is a big deal for corporate management teams and investors alike.  

The retailer has teamed up with gaming platform Roblox to launch Walmart’s Universe of Play and Walmart Land. The former is free to access with purchases available in the game using Roblox’s virtual currency Robux.  

On top of this, Walmart has expanded its Netflix Hub to more than 2,400 stores. This provides customers with a low-priced Netflix Streaming Card which gives users the ability to watch a few of Netflix’s own shows without using a debit or credit card.  

Furthermore, the retailer has extended its return and exchange dates to the end of January 2023, giving more confidence to customers who buy their holiday gifts early.   

Walmart also announced its intention to try and compete with Amazon’s same-day delivery service, through its recent acquisition of robotics automation company Alert Innovation which specialises in the automation of order fulfilment in supply chains.

However, in the last quarter, Walmart suffered from mismanagement in its inventory department which led to unsold goods that could not be resold. This has weighed on the share price and any mishandlings this quarter could have a negative impact on the stock.  

Hedge funds also reduced their positions in Walmart for three consecutive quarters since September 2021. However, in the last quarter, there was a net increase in positions but it is too early to tell whether this will be an ongoing trend or not.  

Source: TipRanks, 1 November 2022 

 

Walmart Stock Forecast - What do the Analysts Say? 

According to analysts polled by TipRanks for a Walmart stock forecast in the past 3 months, there are currently 22 buy, 4 hold and 0 sell ratings on the stock. The highest price level for a Walmart stock forecast is $165.00 with the lowest price target at $128.00. 

The average price target for a Walmart stock forecast is $153.60.

Source: TipRanks, 1 Nov 2022 

 

An Example Trading Idea for the Walmart Stock Price

An example trading idea for the Walmart share price could be as follows:  

  • Buy the stock at $143.00 to allow for current market volatility. 
  • Target just below the highest analyst price target at $165.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Walmart shares:  
    • If target is reached = $220.00 potential profit ($165.00 - $143.00 * 10 shares).

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering the volatility of the stock market so far this year.   

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Walmart stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy Walmart Stock in 4 Steps  

With Admirals, you can buy shares in companies like Walmart with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the Trader’s Room.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock at the bottom of the Market Watch window and drag the symbol onto the chart.   
  4. Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level. 
Source: Admirals MetaTrader 5 Web. Past performance is not a reliable indicator of future results, or future performance. 

 

Click on the banner below to buy Walmart stock today! ▼▼▼ 

Do You See the Walmart Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.  

If you believe there is a higher chance Walmart's share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.  

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.  

This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article. 

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Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.