American retailer Walmart, Inc. (WMT), together with global online content provider Netflix, Inc. (NFLX), announced the launch of Netflix Hub, a dedicated online hub that will feature merchandise from some of Netflix’s most loved shows like “Stranger Things,” “Nailed It!,” and “CoComelon.” Shares of WMT closed at $139.53 and NFLX closed at $627.04 on October 11.
Netflix hopes to improve its sales and visibility as the company’s investors seem to be unhappy with slow subscriber growth earlier this year. The merchandise will be available exclusively in Walmart’s online store and not in the brick-and-mortar stores. (See Insider’s Hot Stocks on TipRanks)
Furthermore, the Netflix hub will also showcase some of its most popular shows making the hub an entertainment hotspot. Beginning this fall, products will be available on the hub in different categories, including music, apparel, toys, books, and games. The hub will even feature merchandise from some of Netflix’s latest shows like Ada Twist, Squid Game, and Stranger Things.
The Netflix Hub will also launch a crowdsourcing page called Netflix Fan Select, which will allow fans to vote for merchandise that they would like to see from their favorite shows. Walmart and Netflix will then make them available on the hub.
Commenting on the partnership, Jeff Evans, Executive Vice President, Entertainment, Toys, and Seasonal, Walmart U.S., said, “From chart-topping music and fashion to the hottest toys, digital platforms and streaming sites are now the pulse behind emerging trends. At Walmart, we recognize the importance of bringing those trends directly to our customers and fast. That’s why I’m excited to announce the launch of the new Netflix Hub at Walmart, which establishes Walmart as the Netflix destination for family entertainment experiences.”
Recently, Wells Fargo analyst Edward Kelly maintained a Buy rating on the stock with a price target of $165, implying 18.3% upside potential to current levels.
Overall, the stock commands a Strong Buy consensus rating based on 17 Buys and 4 Holds. The average Walmart price target of $172.15 implies 23.4% upside potential to current levels. Shares have lost 3.3% over the past year.
Also, Walmart scores a 9 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.