Welcome to Weedmart
Retail giant Walmart (NYSE: WMT) is having a great close to the trading week — shares are up roughly 2.4% on the week by midday Friday following news the company posted the best sales growth in nine years.
(Remember, a near 2.5% move in boring old Walmart is akin to a double-digit move in most other stocks.)
The rise in WMT shares comes off news the company has grown its e-commerce sales revenue by 37% in Q1.
This Is Huge News…
Amazon has dominated the e-commerce space for years. But Walmart is the e-commerce upstart that could challenge Amazon for online sales dominance.
TechCrunch notes: “While Amazon still leads by a wide margin, accounting for 48% of e-commerce sales in 2018, Walmart — including also Sam’s Club and Jet.com — is poised to capture 4% of all online retail spending in the U.S. by year-end, totaling $20.91 billion.”
In terms of total sales, Walmart blows Amazon out of the water:
Tacking WMT’s amazing online sales growth on top of WMT’s strongest sales growth in nine years, we now have a stock in breakout mode.
On the year, WMT shares have gained over 9%.
But investors should be paying attention to a totally different Walmart story this week…
Welcome to Weedmart
Reports hit earlier this week that buyers at Walmart, Target and other big-box retailers have been in hush-hush meetings with cannabis companies to supply cannabidiol (better known as CBD) and CBD-infused products in states where they are legal.
As a refresher, CBD is one of the main compounds in cannabis and hemp that’s been found to have therapeutic properties.
And, right now, CBD is legal in 47 states…
And — this is important — hemp-derived CBD is now legal at the federal level thanks to the 2018 Farm Bill that became law in December.
For its part, Walmart is keeping mum on its plans to introduce CBD or CBD-infused products to stores.
But folks in the industry report major retailers are keeping CBD in mind as they allocate shelf space for new products in 2019 and 2020.
That’s Not as Surprising as It Might Seem
Walmart might not be the first big-box store to sell CBD products. In fact, a handful of large health-specific retailers like CVS, Walgreens and GNC sell them in many states.
But big-box retailers like Walmart and Target are a whole different ballgame.
Walmart’s eventual CBD sales will likely be one slice of a very large revenue pie.
That makes Walmart a perfect pot pick-and-shovel play.
WMT is a great place to park some funds. And while you’re booking profits with this blue chip…
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