Question

1. Identify a recent (in the past 12 months) event that had a positive or a negative impact on WALMART’s stock price movement.
2. The event must be firm-specific. It cannot be a macroeconomic event.
3. Quantify the effect (rise or drop) in stock price due to the event (but not due to any other events).
4. Any supporting material beyond the half-page of text must be included in an appendix.

Answer 1

In May - 2018, Walmart acquired a 77% stake in the indian e-commerce giant Flipkart for $16 billion. This deal gives walmart a greater access to India's e-commerce market. but this deal will take some time to be profitable. because of this deal, Walmart stock price dropped by almost 4% immediately. Walmart's top management belives that this deal will be profitable in a long run, as flipkart is expected to generate losses for next few years. so this deal is clearly an investment for future.

But as of now, because of this deal, Walmart's stock price is dropped. But this will lead to a profitable investment for the company in future because India is a very big market.