When big companies set out to hire executives, the decisions are more about finding the right person for the future, not for today.
These companies have strategic plans in place, and they want the best person to help them reach those goals.
Walmart Inc. (NYSE: WMT) made such a hire this week when it hired PayPal (Nasdaq: PYPL) CFO John Rainey to be the retailer’s next chief financial officer.
The hire has tipped Walmart’s hand.
In this episode of The Bull & The Bear, I tell you what Walmart is looking to do, and what it means for its biggest competitor: Amazon.com.
Walmart’s PayPal Hire: Beyond Big-Box Retail
Walmart is known for low-cost, big-box retailing.
The company operates 10,500 stores and various e-commerce sites under 46 distinct brands in two dozen countries worldwide.
It’s a global powerhouse when it comes to low-cost goods.
The recent hire of Rainey spells out a massive target the company is going after now: Amazon.com Inc. (Nasdaq: AMZN) — specifically, its stranglehold on third-party sellers.
And Walmart may smell blood in the water. Check out this chart:
The value of third-party sellers on Amazon has seen a steady decrease since the first quarter of 2021 — meaning the growth rate of third-party sellers is slowing.
This creates an opening for another company to come in and swoop up those sellers … and dig into Amazon’s hold on the market.
In this episode of The Bull & The Bear, I show you how the hiring of Rainey positions Walmart to cut into Amazon’s third-party selling market share — and how you can best profit from it.
The Bull & The Bear
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Matt Clark, CMSA®
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He’s the host of our podcast, The Bull & The Bear, as well as the Marijuana Market Update. He’s also a certified Capital Markets and Securities Analyst through the Corporate Finance Institute. Before joining the team, he spent 25 years as an investigative journalist and editor — covering everything from politics to business.