00:00 Speaker A
Juggernauts like Walmart, trying to sort through it all. For more, we’re bringing in Yahoo Finance senior reporter Brooke Di Palma. Brooke.
00:08 Brooke Di Palma
Good afternoon to you both. I mean, if we’ve learned anything, this environment is not for the weekend. That certainly stands true when you think about Walmart. They started out this morning saying that tariffs would be taking a toll on their profits. Of course, they said that prior to this 90-day pause that 10% still in effect and 125% on China. Keep in mind Walmart did share that one of the one-third of goods that it imports, China is one of Walmart’s quote-unquote most significant countries that it does import from. And now China has that 125% tariff on imports there. But many analysts that I’ve been speaking to all day have said that Walmart is entering this environment with the position of strength here, which you can’t say for many retailers. That’s largely because of the sheer scale that Walmart has is far larger than others, and it also has these high margin revenue streams that we were hearing a lot about today, including their e-commerce and advertising business, Walmart Connect. We did now learn that their e-commerce business is expected to be profitable in Q1. Their US e-commerce business, and the entire business is expected to be profitable by the year end on an annual basis. And when you think about just how much of an e-commerce jump we saw last quarter from Target compared to Walmart, Walmart nearly doubled their e-commerce growth year over year. Also, that advertising business is huge for Walmart. Walmart Connect grew by 24% in the US last quarter. That’s compared to Target’s roundel business up just 13%. And Walmart CFO actually said this morning to investors that in this sort of environment, they know they see an increase in foot traffic. Where do advertisers want to be? Where the eyeballs go. And so Walmart certainly positioning themselves in this environment saying that they have a position of strength and no matter what happens here, more people will come in uncertainty.
03:17 Speaker A
Lots to unpack there.
03:20 Speaker B
Yeah. Brooke, thank you for helping us do that. Appreciate it.