Retail giant Walmart Inc. (NYSE: WMT) has posted upbeat results for the second quarter ended in July. The company’s adjusted earnings of $1.77 per share surpassed analysts’ expectations of $1.62 per share. Revenues of $152.9 billion rose 8.4% and outpaced the consensus estimate of $150.8 billion. Investors looked impressed with the company’s upbeat results, as WMT stock rose 4.1%, at the time of writing, in Tuesday’s pre-market trading session.
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Meanwhile, in a bid to boost its membership offerings, Walmart has signed a deal with Paramount Global. Through this deal, the retail giant is providing a new streaming benefit to its members by giving access to Paramount+ Essential subscription at no additional cost, starting September.
Walmart’s move to join hands with Paramount Global has the potential to boost the company’s membership base, financials, and stock price.
According to a Wall Street Journal report, the companies have entered into a 12-month exclusivity agreement along with a two-year deal. The Walmart+ members will be able to stream popular drama shows of Paramount+ and get access to the latest successful films and live sports.
The “essential tier” of Paramount+ can be subscribed at $4.99 per month and includes advertisements. Its premium product, without commercials, is available for $9.99 per month. Paramount+ recently announced that it had nearly 43.3 million global subscribers at the end of its latest quarter. It aims to reach a goal of 100 million Paramount+ subscribers by 2024, per a CNBC report.
Walmart, which introduced Walmart+ in September 2020, has been leaving no stone unturned to enhance its popularity. The membership already includes a lot of other perks like the in-store offers and discounts, discounts at the gas pump and on groceries, six months of Spotify music-streaming service and free shipping on online orders.
According to a Morgan Stanley survey, Walmart+ has about 16 million members. It had 15 million members in November last year.
Is Walmart a Good Stock to Buy Now?
As per TipRanks, analysts are optimistic about WMT, which commands a Strong Buy consensus rating based on 24 Buys and seven Holds.
Similarly, financial bloggers are 88% Bullish on WMT, compared to the sector average of 66%.
On the contrary, hedge funds’ confidence signal is negative on the stock, as they have collectively sold 1.4 million shares of WMT in the last quarter.
What Is the Prediction for Walmart Stock?
Walmart’s average price forecast of $145.10 implies 9.43% upside potential. Shares of the stock have declined about 7.2% so far this year. The company is scheduled to report its second-quarter 2022 earnings on August 16. As of now, WMT stock is expected to gain from its deal with Paramount Global.
Further, the company’s efforts to attract new members will only enhance its revenue stream.
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