Walmart’s (tkr: WMT), E-Commerce offerings continued to scale with revenues of $17.1 billion in Q4 and $60.3 billion for the year. E-Commerce accounted for approximately 11% of Walmart’s total Net Sales for the year ended January 31st. WMT E-Commerce is larger than many e-commerce companies from a revenue standpoint including PayPal, Shopify, Square and Wayfair combined. However, given that WMT E-Commerce is buried inside of a larger, slower growing company, it could be some time before WMT E-Commerce is more fully reflected in WMT’s valuation. Thus, we recommend that WMT’s Board of Directors consider spinning-off its E-Commerce operations to unlock shareholder value.
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