Data from cloud computing giant Salesforce (CRM) shows that online sales during the U.S. Thanksgiving holiday weekend are on track to rise 6% from last year.
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Salesforce says that shoppers are taking advantage of discounts being offered by retailers such as Amazon (AMZN) and Walmart (WMT) on items ranging from electronics to home goods. The data suggests that shoppers remain resilient in the U.S. despite uncertainty caused by tariffs and a slowing economy.
As of 2 p.m. Eastern time on Thanksgiving (Nov. 27), online spending in the U.S. was 5.8% higher than at the same time last year, reaching $2.6 billion, according to Salesforce. However, the full force of the holiday weekend shopping won’t be felt until the day after Thanksgiving, known as Black Friday.
High Stakes for Retailers
The holiday shopping season that runs from U.S. Thanksgiving until the day after Christmas is the most important time of the year for retailers, delivering about a third of their yearly sales and profits. According to Salesforce, digital sales around the world (the U.S. and abroad) are expected to reach $36 billion by the end of day on Nov. 27.
Black Friday, which is the biggest day of the year for online shopping, is expected to drive $78 billion in online global sales, with $18 billion of that total coming from the U.S. alone. Earlier this week, electronics retailer Best Buy (BBY) said its discounted computers and smartphones were flying off the shelves. Clothing retailers the Gap (GAP) and Abercrombie & Fitch (ANF) were similarly positive on the holidays.
Is WMT Stock a Buy?
Let’s take a look at the stock of Walmart, the largest U.S. retailer. The shares have a consensus Strong Buy rating among 26 Wall Street analysts. That rating is based on 26 Buy recommendations issued in the last three months. The average WMT price target of $121.92 implies 11.58% upside from current levels.
