Stansberry Research is an investment research which publishes articles that affect investments around the world, from the economic crash in China to the economic meltdown.
Extreme Value is a monthly investment advisory edited by Dan Ferris. Ferris gives stock investing advice and concentrates on the leading profitable stocks. Walmart, in particular, in October of 2006, has captured Ferris’s interest because he referred to Walmart as the “World Dominator” of traded stocks. Stockholders followed Ferris’s advice and double their investment in the financial crises and bear market. Ferris has made accurate predictions of the rise and fall of Walmart’s economic life throughout the years.
Because of the advent of online purchases, it has been assumed that the brick and mortar stores have no future (https://www.indeed.com/cmp/Stansberry-Research). This opinion was bolstered by the fact that Walmart’s stocks plunged in value by 10%, in February of 2018, as a result of the reduction of growth of online sales, as compared to the increase of online sales of Amazon. Walmart’s decline in its stock value was as much as 10%. The fall of its earnings was its largest since October of 2015, and there were rumors that its e-commerce division was losing its director. Once again Walmart’s stockholders feared that it could not compete with Amazon.
However, Dan Ferris is still bullish that Walmart will retain its “World Dominator” reputation. Walmart’s earnings declined by 35% in 2015 because of the belief that its stock price was overvalued based on Stansberry Research.
It is Ferris’s opinion that Walmart has the edge over Amazon in that it has significantly more Flagship stores and that consumers lived within ten miles of a Walmart superstore says Stansberry Research.
Further, the brick and mortar store is still more viable than online sales because the online up to date catalog is a feeder for customers to purchase Walmart’s products on the brick and motor stores. Amazon is far behind and is now establishing its brick and mortar stores. As a result of Walmart’s square footage brick and mortar advantage over Walmart, Ferris predicts that Walmart will overcome its losses and will still reign as the “World Dominator”