Profit Pregame

How You Can Win the Subsciption Service War (No Matter Who Comes Out on Top)

The day is finally here…

After months of rumors flying, Walmart+ has finally been unveiled.

What’s happening?

On Tuesday, Walmart unveiled its new subscription service in hopes of going head-to-head with Amazon prime.

The service is called Walmart+ and will cost you $98 a year for a membership. The plan includes free shipping on orders $35 and over, same-day deliveries on specific items from stores, including groceries. Members will also receive five-cent-per-gallon discounts on gasoline and will have the ability to scan items with the Walmart app while shopping in stores. This new process will allow them to pay and check out without waiting in line.

Walmart is calling this new subscription the “ultimate life hack,” and it’s a big jump from what the company once offered. Walmart+ will be replacing “Delivery Unlimited” – which costs the same amount but was limited to around a quarter of the 4,700 stores that will offer Walmart+ to customers.

Where’s the money?

Now, as I said earlier, Walmart+ was created in hopes to dethrone Amazon Prime. And while Walmart’s service undercuts Amazon Prime by $21 a year – it’s still missing some major benefits that Prime brings to the table.

Some of these benefits include no minimum purchase for free shipping, and Prime offers some hidden perks, including free music, TV, and movie streaming, and unlimited photo storage. So, I’m sure it goes without saying that Walmart has some significant catching up to do – and the company has already begun laying the foundation to expand the service over time.

But Walmart isn’t down for the count – because it has one thing that Amazon doesn’t. Proximity to its customers. About 90% of Americans live within ten miles of a Walmart. The fact that 2,700 of its stores will ship items on the same day may help it beat Amazon in delivery speeds in many areas.

How can I get some?

So, the subscription service battle has officially begun.

And Walmart+ really is off to a great start – the stock sure has reacted nicely too. But if I’m honest, I don’t think the service carries the punch it needs to beat Amazon at its own game. For me, the biggest obstacle that Walmart will face is obviously that $35 minimum for free shipping. This could deter many consumers, and this added with the fact that Amazon has a lot more items to offer, makes me believe that it’s going to be an uphill climb for Walmart.

Now, I can’t deny that Walmart is making a good business move as this service proves that aren’t just an old brick and mortar big box store and are willing to adopt new ideas and concepts that they should have years ago. But when it comes down to it…I believe that the winner will be who always wins – Amazon (AMZN). And that’s why I’ll be looking to buy amazon on any dip.

In the spotlight: The world’s favorite automobile maker

Tesla has been breaking records all year. In fact, the stock has soared nearly 500% in 2020. And now, amid its record rise, the company has decided to sell up to $5 billion in stock. The company announced the plan in a regulatory filing with the Securities and Exchange Commission Tuesday. The stock sale comes one day after Tesla’s stock split took effect, cutting each share price by a fifth.

Tuesday, the stock was up another 3% – bringing the price to around $515 a share. At that price, Tesla is now worth about $475 billion — more than all the blue-chip S&P 500 index but six. That makes CEO Elon Musk the third-richest person in the world.

Tesla has been riding a strong wave of positive momentum, especially after splitting the stock. But just as we talked about yesterday, I would be careful just jumping into this rally. If you’re looking to add this robust automobile stock to your lineup, keep an eye out for a pullback – specifically looking for a price below or equal the price of the stock before the split announcement.

As I’ve Mentioned Before…

Massive announcements like the rollout of Walmart+ can sometimes be more hype than substance when it comes to a company’s value.

While they might provide temporary bumps, true sustainable growth potential in a stock isn’t found by reading the news…

It takes thorough research, which – when combined with my proprietary S.C.A.N. trading algorithm – is the foundation of my Project 303 trading service.

And this year, S.C.A.N. has helped us separate the moneymakers from just the headline-makers.

Click here now to see how S.C.A.N. works, and how to put it to work for you!

Community Tips

Inline Feedbacks
View all comments