Source: PaxForex Premium Analytics Portal, Fundamental Insight
While many investors think of blockchain technology only in terms of cryptocurrencies, a growing number of S&P 500 companies are using it to optimize their business, deepen their competitive advantage and unlock new market opportunities. One of the best examples is Walmart, which is trying to take a fresh look at the future of retail.
Walmart is actually an early adopter of using blockchain technology in business. These efforts have intensified significantly over the past two years. Here's a closer look at two of Walmart's strategic initiatives that have the most potential to drive future growth for this huge retailer.
In December 2021, the company capitalized on the hype and excitement around the metaverse by announcing a series of trademark filings for virtual products and digital assets in the metaverse. Then, in 2022, Walmart began to build up its presence in the metaconsumers. For example, in September 2022, the company announced Walmart Land, a new digital world in the Roblox metaverse. It also launched the Walmart Universe of Play.
Walmart's leveraging of the metaverse is part of a growing recognition that the future of retail is about digital goods in digital worlds, not just physical goods in the real world. If you are a long-term investor, this is a very interesting development because it signals that Walmart may be on the cusp of developing a whole new revenue stream based on digital goods. Instead of buying clothes or household items just for yourself, you will soon be buying those same items for your online avatar as well.
What's more, Walmart has filed a number of patents for NFT, potentially leading to online marketplaces for buying and selling what Walmart calls downloadable digital goods. In terms of competitive advantage, it is interesting to compare and contrast what Walmart and Amazon are doing with NFT and digital goods.
Like Walmart, Amazon is working on a new NFT initiative that could be launched in the next few months. It is not yet known exactly how Amazon plans to use these technologies, but it is clear that the two retail giants are convinced that digital goods could be a new growth opportunity.
Of course, Walmart could make a real splash if it makes cryptocurrency payments a reality for shoppers online and in stores. We've already seen a number of hints that this could happen in the near future. For example, Walmart has gotten a lot of attention for adding bitcoin ATMs to its retail stores. Walmart stores had more than 200 bitcoin ATMs in 2021, and there are plans to expand that number to 8,000.
According to Walmart executives, cryptocurrency will soon become a major disruptor of payments, especially in the metaverse. Not surprisingly, Walmart has filed a number of patents related to crypto payments. That retail chain that is the first to adopt crypto payments will have a huge strategic advantage, especially in attracting young, tech-savvy shoppers from the 18-to-34 demographic.
Imagine standing in line at Walmart and using your phone to pay with bitcoin or whatever coin Walmart decides to make an industry standard. Rumors that Walmart will eventually adopt Bitcoin or Litecoin as a form of payment have been circulating for several years.
While some of these Walmart initiatives involving blockchain, cryptocurrencies, and the metaverse may eventually come to naught, the company has already learned a lot about customer preferences for online shopping these days. No one knows how the metaverse will evolve next, but Walmart - by virtue of being the first to do so - will have a good chance of becoming a leader in the metaverse and cryptocurrencies.
The company seems to be betting heavily on blockchain and cryptocurrencies as the future of retail. There will be new demographics to attract, new product segments to explore, and new digital products to create. If Walmart can become a market leader, this could be impressive for its growth prospects. For this reason, it is safe to say that Walmart is a screaming buy.
As long as the price is above 139.00, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 145.91
- Take Profit 1: 150.00
- Take Profit 2: 154.50
Alternative scenario:
If the level of 139.00 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 139.00
- Take Profit 1: 136.00
- Take Profit 2: 132.00
