This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

What You Won't See in Wal-Mart's Earnings

Stocks in this article: WMT

Editor's note: As part of our partnership with PBS's Nightly Business Report, TheStreet's Jeanine Poggi joined NBR Monday (watch video and read transcript here) to preview Wal-Mart's third-quarter earnings.

NEW YORK ( TheStreet) -- Wal-Mart's (WMT) U.S. same-store sales will once again be front and center when the discount giant reports third-quarter results on Tuesday. But there's another key element that will be mostly invisible, at least for now, in the results -- its investment in technology.

Currently, Wal-Mart's e-commerce is severely lacking, representing less than 1% of total sales, according to Citi analyst Deborah Weinswig. But the No. 1 retailer has been pouring money into its new @WalmartLabs division, which has assumed responsibility for the company's growth in e-commerce, mobile shopping and social media.

"We believe that the creation of @WalmartLabs and the division's subsequent acquisitions should help drive increased online sales growth as we move into 2012 and beyond," Weinswig wrote in a note.

Word on the Street

>Wal-Mart: The Next Tech Giant

@WalmartLabs, which was launched in April as a product of Wal-Mart's acquisition of Kosmix, has been hard at work in the past six months. Its efforts started to take shape this week, with the company launching two mobile and iPad shopping applications. The new applications utilize budgeting and list tools, camera functionality and coupons to facilitate seamless shopping for users.

Don't Chase Wal-Mart Into Earnings

"We believe that the creation of its own proprietary app fits Wal-Mart's historical strategy and we expect Wal-Mart to continue to focus on creating products that enhance the shopping experience and blur the lines between its brick-and-mortar store and its online platform," Weinswig noted.

>>>Wal-Mart Discovers New Purpose for Pop-Up Stores

On Facebook, @WalmartLabs rolled out a massive marketing effort centered around Black Friday and the holiday season earlier in the month. The company will also unveil Shopycat, an application that uses data from activity and profiles on the social network to provide users (who opt in) a list of gift suggestions based on their budgets and helps locate these items online or in stores.

The 70-person @WalmartLabs team of engineers and researchers is expanding, with the company opening a software development arm of 100 employees in Bangalore, India. The new venture will develop applications to provide customers with the exact location of a certain item in the company's big-box stores and detailed product comparisons.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs