Home Markets Walmart stock price trades sideways despite a potential $25 billion new investment

Walmart stock price trades sideways despite a potential $25 billion new investment

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  • Walmart is reportedly in talks to invest up to $25 billion in Tata Group’s new “super app”
  • It would become the largest Walmart’s investment, topping its buyout of 66% stake in Flipkart for $16 billion
  • Walmart stock price gained modestly last week to trade around 10% off the record highs

Walmart (NYSE: WMT) stock price is trading nearly unchanged on the week despite media reports that the giant is looking to invest up to $25 billion in Tata Group’s new “super app”.

Fundamental analysis: Reliance continues to attract attention

According to the latest media reports, Walmart is currently in discussions with Tata Group and the two companies could agree to roll out the super app as a joint venture, leveraging on the teamwork between both companies’ e-commerce units, the report said.

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The decision comes after Reliance Industries Ltd secured more than $20 billion in investments from major companies such as Facebook, Alphabet’s Google, KKR & Co and Silver Lake Partners through selling stakes in its digital business Jio Platforms. 

Reliance Industries is run by the business magnate and the richest man in Asia Mukesh Ambani. On the other hand, Bloomberg reported that Tata Group is in talks with potential investors about stakes in its new digital platform. 

A media report said that Walmart could spend between $20 billion to $25 billion and buy a large stake in the proposed super app that will operate under Tata Sons business. The app is scheduled for launch in India in December or January and will assemble Tata’s consumer operations under one channel, providing a broad range of products in the retail world.

Tata Group’s consumer units include watch and jewellery company Titan and fashion retailer Trent. If the two companies come to an agreement, it would become the largest Walmart’s investment, topping its buyout of 66% stake in Flipkart for $16 billion. Goldman Sachs is hired to broker the deal. 

Technical analysis: Share price muted

Walmart stock price trades nearly unchanged on the week. Shares gained 1.46% last week on the recovery in equities after dropping around 10% off the record highs above the $150 mark.

Walmart stock daily chart (TradingView)

The horizontal support sits at $133.30, in case the correction is deeper. The 200-DMA comes near $130 as a further support for buyers.

Shares of Tata Consultancy Services, Tata Motors and Tata Steel moved up over 1% each.

Summary

Walmart Inc is in discussions with Indian conglomerate company Tata Group about an investment of up to $25 billion in Tata’s new “super app”. Shares trade mostly unchanged on the week, around 10% off the highs.