Walmart (WMT) Stock Drops, Analysts Skeptical of Payment App
NEW YORK (TheStreet) -- Shares of Walmart (WMT) - Get Report are down 0.54% to $73.43 in late afternoon trade after the company rolled out its new Walmart Pay app earlier this week.
Researchers at Forrester Research said that the company may have to do more with its payment app if it expects customers to use it.
"I can just pull out my credit card and swipe it," said Forrester Research's Brendan Miller to Bloomberg. The app, according to Miller, does not have enough additional services to incentivize its use unlike similar programs.
Starbucks (SBUX) mobile app payment service has the incentives Miller is looking for. The coffee retailer's app gives frequent users free beverages, coupons and order-ahead service for usage.
Walmart's new payment service, however, sees the same benefits as paying with cash or credit. Walmart hopes the app will help streamline and speed up payment at its locations.
Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance and notable return on equity. TheStreet Ratings feels its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
You can view the full analysis from the report here: WMT
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.