Back to top

Analyst Blog

Walmart Stores(WMT - Analyst Report) has gone another step closer to its customer’s hearts and has decided to launch its first Facebook application, Shopycat, to help its buyers choose gifts for their friends online and avoid the holiday season rush.

WalmartLabs, Walmart’s Global e-Commerce Division, and the company’s hub for creating technologies and businesses in social and mobile commerce for global shoppers has set up the Shopycat application. WalmartLabs was formed after Walmart acquired Mountain View-based Kosmix, a heavily-funded social media technology provider.

The application will scour data from the social networking site Facebook, and will thereafter recommend gift for a person based on his likings and requirement. The application will also provide links to sites other than, with the purpose of creating a broader marketplace rather than just a Walmart application. The application is part of Walmart’s Facebook page, which has 10 million fans.

The gifts are usually not priced on the higher side and range between $10 and $100. It is particularly helpful for budget-constrained customers.

However, customers need not be cautious about the infringement on personal data, as the founder of Kosmix, Anand Rajaraman, assured that Walmart will never use consumers’ data in any way beyond what it has been permitted.

Walmart is also working on technologies such as those that let shoppers buy products in the aisles and skip the checkout line, and is also interested in NFC (near-field communication) for enabling purchases by phone.

Other retail biggies are also promoting sales through Facebook. In early November, EBay Inc. (EBAY - Analyst Report) launched an online service, Group Gifts, that connects eBay shoppers with Facebook friends to collectively purchase presents.

Wal-Mart reported better-than-expected second-quarter 2012 results on November 15, with quarterly earnings of $1.09 a share, up 12.4% over the year-ago earnings of 97 cents a share. Reported earnings per share also surpassed the Zacks Consensus Estimate by a penny.

However, Wal-Mart faces stiff competition from Target Corp. and Costco Wholesale Corporation (COST - Analyst Report), and has a Zacks #3 Rank, indicating a short-term ‘Hold’ recommendation.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 2.99 +2.75%
THE PANTRY… PTRY 20.99 +1.94%
CHINA BIOLO… CBPO 46.88 +1.77%
PIPER JAFFR… PJC 54.51 +1.63%
NN INC NNBR 28.43 +1.46%