Walmart stocks dip over 4 per cent after deal
Flipkart is expected to generate meaningful losses for the next few years, so this is a bet for the future, say analysts.
By : DC Correspondent
Update: 2018-05-09 20:47 GMT
New York: The Wall Street remained cautious about Walmart’s acquisition of Flipkart as the share dipped over 4 per cent in the intra-day trade on Wednesday.
The deal — which may be the biggest ever in e-commerce — gives Walmart greater access to the Indian e-commerce market. Due to strict FDI norms, Walmart had been restricted to cash and carry segment.
Flipkart is expected to generate meaningful losses for the next few years, so this is a bet for the future, say analysts.
The cautionary tone from analysts was reiterated as Walmart shares plunged 4.2 per cent to $82.12 in the intra-day trade and m-cap went down by $10 billion after the deal was announced.