Walmart (WMT) stock rose Tuesday morning after the retail giant reported fourth-quarter earnings that showed a 6% year-over-year quarterly revenue increase. This figure was further supported by a 23% increase in e-commerce sales. Additionally, the company announced that it has entered into a deal to acquire VZIO for $2.5 billion.
TD Cowen Senior Research Analyst Oliver Chen joins Yahoo Finance to discuss Walmart's earnings, the potential deal with Vizio, and how it could impact Walmart's business going forward .
Chen said why Walmart's deal with Vizio means a lot to the company: “There is an opportunity in the market in terms of third-party sales.” [and] There are also huge opportunities in digital advertising. And given that it already has an operating system for the Smartcast system, which has around 18 million members, Vizio Connect will help make this possible and help turn digital advertising into a highly profitable business. Helps accelerate. We modeled a profit margin of over 70%, growing at a 30% pace. So digital advertising is the future for Walmart, and we see this as a technology company as well. That's why this is one of our big ideas. ”
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Editor's note: This article was written by Nicholas Jacobino
