Yahoo Finance Here’s How Much You Would Have If You Invested $1,000 in Walmart’s IPO
Business is booming for Walmart. With food at home prices shooting up 24.6% since the pandemic started in March 2020, American families have turned to more budget-friendly options to get by.
According to FoodIndustry.com, that’s made Walmart the number-one grocer in the U.S. with more than a quarter of all grocery revenue in the country. Yahoo Finance reported that even the wealthiest earners are now shopping at Walmart to take in these savings. That all comes as great news to shareholders as Walmart is firing on all cylinders.
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Walmart’s Present Financials
As of the most recent earnings report released on May 16 covering the period ending April 30, Walmart was able to beat all expectations as shares jumped as much as 6% in early trading hours on Thursday.
Walmart posted a review of $161.51 billion for the quarter, beating the expected $159.58 figure. The adjusted earnings per share were higher at $0.60, compared to analyst estimate of $0.53. Walmart’s net income reached $5.10 billion, which was credited to significant progress in the e-commerce business and winning over more high-income shoppers.
CEO Doug McMillion declared it a “great quarter” for America’s largest employer, with 1.6 million staff employed nationwide. In an interview with CNBC, Chief Financial Officer John David Rainey said that the increased price gap between cooking at home and buying take-out food helped the grocery business.
“We’ve got customers that are coming to us more frequently than they have before and newer customers that we haven’t traditionally had, and they’re coming into a Walmart whether it’s a virtual store online, or whether it’s one of our physical stores,” Rainey said.
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How Much You Would Have If You Invested in Walmart’s IPO
Walmart first offered shares for $16.50 through an initial public offering in October of 1970. Walmart conducted another stock split in February of this year, the first one since 1999 and the 12th one in 50 years. With this 3-for-1 stock split, you would have 1,563 shares for every share that you purchased at the IPO in 1970.
If you invested $1,000 in Walmart shares on the IPO day, you could’ve purchased 60.61 shares. When you multiply this by 1,536 at the closing stock price of $64.01 on May 16, you would have 98,319.36 shares, totaling $5,959,136.41 in value. This $1,000 investment would’ve paid off if you held the stock the entire time, especially as the retail giants just hit a record closing price.
Selena Fragassi contributed to the reporting for this article.
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