Walmart Shares Zip Past Amazon.com
June 12 2019 - 3:35PM
Dow Jones News
By Gunjan Banerji
Walmart Inc. shares are on a tear that some observers warn can't
last.
The retailer's shares have risen 7.2% over the past eight
sessions, recording their longest winning streak since August 2017.
In the latest sign of how enthusiastic investors have been toward
the company's shares, its stock price gained 0.8% Wednesday
afternoon -- on track for its highest close since January 2018 --
even as competitor Amazon.com Inc. and major U.S. stock indexes
notched declines.
For both the month of June and the second quarter of this year,
Walmart has outperformed its rival Amazon, which tends to be a
favorite for investors seeking shares of highflying internet
companies.
The recent rush to safer stock sectors such as utilities and
consumer staples has stoked interest in shares of Walmart.
Investors have turned to the consumer-staples sector, betting that
if the economy slows, shares of companies that produce essential
household items will hold up.
The Consumer Staples Select Sector SPDR Fund, which holds
Walmart and companies such as Procter & Gamble Co., has risen
for eight consecutive days and was up 6% over that period. It was
on track to notch its best eight-day stretch since March 2009 in
recent trading, according to Dow Jones Market Data.
Walmart's recent outperformance relative to heavyweight Amazon
was surprising to some observers. Walmart's business tends to be
more focused on its bricks-and-mortar stores, making it less
flexible, said Mike Bailey, director of research at FBB Capital
Partners.
"Amazon's still got a lot more levers to pull," Mr. Bailey
said.
Amazon, though, has been hit by concerns over greater regulation
of technology companies.
The two companies remain entrenched in a battle for online
shoppers, and investors might not want to get ahead of themselves
in terms of picking a winner.
(END) Dow Jones Newswires
June 12, 2019 15:20 ET (19:20 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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