Latest news with #SmartCastOperatingSystem
Business Insider
22-07-2025
- Business
- Business Insider
Walmart Stock (WMT) Switches on as Vizio TVs Set to Grab Holiday Season Share
Walmart (WMT) stock was higher today on hopes that its Vizio-powered televisions will make more investors and customers switch on to the business. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to a memo seen by Bloomberg News by the end of this year, Walmart is planning to convert Vizio into a private label brand and sold exclusively in its stores, online and at Sam's Club. Media Empire That means its smart TVs would not be sold on Amazon (AMZN) and Target (TGT). Walmart bought Vizio and its SmartCast Operating System back in February 2024 for $2.3 billion. The memo states that by making Vizio's hardware and advertising capabilities exclusive to Walmart retail channels will help the company fortify and differentiate its growing media empire from that of its competitors. It also states that over 20 of its 90 private-label brands generate at least $1 billion in annual sales. It is understood that Walmart is launching a new lineup of smart TVs under the in-house Onn brand, powered by Vizio, later this year for the holidays season. That should open up another valuable revenue stream for the group. Holiday TV The operating system on Walmart's Onn smart TVs and Vizio TVs will reportedly be indistinguishable, with both offering access to popular apps like Netflix (NFLX) and Amazon's Prime Video. Walmart will stop licensing the Roku operating system for its Onn smart TVs and will shift to using SmartCast on an exclusive basis. In an analyst note today, focused on Roku (ROKU) rather than Walmart, Daniel Kurnos of Benchmark said that one of its main challenges was the U.S. retail giant's new TV range. 'The ongoing narrative around potential share loss to Walmart is going to be tough to dispel given how far out that event might be, never mind how long it will take Walmart to transition their ONN TVs,' he wrote. However long the wait Walmart is already competing well with its traditional rivals. Is WMT a Good Stock to Buy Now? On TipRanks, WMT has a Strong Buy consensus based on 28 Buy ratings. Its highest price target is $120. WMT stock's consensus price target is $111.33 implying a 15.84% upside.
Yahoo
08-07-2025
- Business
- Yahoo
Can Walmart's High-Margin Verticals Sustain Its Retail Edge?
Walmart Inc. WMT is redefining its growth strategy by focusing on high-margin revenue streams — specifically advertising, memberships and marketplace expansion. This strategic pivot is strengthening the company's profitability and reinforcing its dominant position in the global retail the first quarter of fiscal 2026, Walmart reported significant progress driven by a more profitable business mix. The company's advertising revenues surged 50% year over year, thanks in part to its December 2024 acquisition of VIZIO. By integrating VIZIO's SmartCast Operating System, Walmart Connect gained advanced capabilities to deliver personalized, scalable advertising solutions. Walmart Connect's U.S. operations grew 31%, while Sam's Club advertising climbed 21%. On the international front, ad revenues jumped 20%, led by a robust performance from income was another key growth engine. Total membership revenues increased roughly 15% year over year. Sam's Club U.S. recorded strong growth in new members, higher renewal rates and an uptick in Plus memberships, resulting in a 9.6% rise in membership income. Walmart+ posted double-digit growth, while Sam's Club China saw membership income rally over 40% amid growing is also expanding its third high-margin vertical: marketplace and store-fulfilled delivery. This integrated, omnichannel ecosystem enhances operational efficiency while elevating customer accelerating growth in advertising, memberships and marketplace services, Walmart is positioning itself for long-term earnings growth and stronger shareholder value in today's fast-evolving retail landscape. As Walmart intensifies its focus on high-margin businesses, rivals like The Kroger Co. KR and Target TGT are also investing in alternative revenue streams to boost is strengthening its profitability through high-margin alternative profit businesses, particularly retail media and health & wellness services. In fiscal 2024, these segments delivered $1.35 billion in operating profit, fueled by a robust 17% year-over-year increase in retail media revenues. Kroger Precision Marketing continues to gain traction, with rising commitments from advertising agencies underscoring its growing influence as a key profit is accelerating its shift toward high-margin, non-merchandise revenue streams by scaling digital advertising and marketplace services. Roundel, Target's retail ad business, continues to benefit by driving higher engagement, performance and campaign success. Meanwhile, Target Plus — the company's third-party digital marketplace — also delivered double-digit growth in the first quarter of fiscal 2025. Shares of Walmart have rallied 42.6% in one year compared with the industry's growth of 40.8%. Image Source: Zacks Investment Research From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 36.43X, above the industry's average of 33.12X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for WMT's fiscal 2026 earnings implies year-over-year growth of 3.6%, whereas its fiscal 2027 earnings estimate suggests a year-over-year uptick of 11.7%. Image Source: Zacks Investment Research WMT stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report The Kroger Co. (KR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
