Walmart's management thinks associates should be able to acquire complete shares, not fractional ones. CEO Doug McMillon said, "Sam Walton believed it was important to keep our share price in a range where purchasing whole shares, rather than fractions, was accessible to all of our associates."
Walmart offers stock-purchase plans to over 400,000 employees. These workers may automatically invest part of their income in Walmart shares. The employer will match 15% of the first $1,800 every year, a $270 incentive.
More Walmart employees buying shares should boost company. Employees become business owners by buying shares. Thus, the job is more than simply this week's income; it affects workers' long-term economics. Employees who hold Walmart shares have a stake in its success.
When investigating stocks to buy, buyers should examine insider ownership. It doesn't guarantee profitable investments. It's nice to see firms whose insiders own many shares since their financial interests correspond with regular shareholders.
Recent headline-grabbing stock splits have delighted investors. Walmart's stock split may provide some employees a sense of ownership, which is crucial. Investors should never lose sight of the business.
Walmart's retail business is rock-solid. With more than 10,000 outlets, the company's trailing-12-month revenue reached an all-time high in the third quarter of 2023 as same-store sales rose 4.9%.
Walmart is also pursuing growth potential that investors have overlooked. It has collaborated with advertising-technology startup The Trade Desk to rapidly build its advertising business.
Over the last year, Amazon's advertising income was $44 billion. Thus, a large advertising business is possible. Walmart shareholders should prioritize these business matters before stock splits, even though the latter is more thrilling.
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