Share these talks and lectures with your colleagues
Invite colleaguesWe noted you are experiencing viewing problems
-
Check with your IT department that JWPlatform, JWPlayer and Amazon AWS & CloudFront are not being blocked by your network. The relevant domains are *.jwplatform.com, *.jwpsrv.com, *.jwpcdn.com, jwpltx.com, jwpsrv.a.ssl.fastly.net, *.amazonaws.com and *.cloudfront.net. The relevant ports are 80 and 443.
-
Check the following talk links to see which ones work correctly:
Auto Mode
HTTP Progressive Download Send us your results from the above test links at access@hstalks.com and we will contact you with further advice on troubleshooting your viewing problems. -
No luck yet? More tips for troubleshooting viewing issues
-
Contact HST Support access@hstalks.com
-
Please review our troubleshooting guide for tips and advice on resolving your viewing problems.
-
For additional help, please don't hesitate to contact HST support access@hstalks.com
We hope you have enjoyed this limited-length demo
This is a limited length demo talk; you may
login or
review methods of
obtaining more access.
Printable Handouts
Navigable Slide Index
This material is restricted to subscribers.
Topics Covered
- Real options
- Walmart
- Jet.com
- Aftermath
- The moral of the story
Talk Citation
McDonald, M. (2022, July 31). Walmart: stock valuation and real options with Jet.com [Video file]. In The Business & Management Collection, Henry Stewart Talks. Retrieved October 7, 2024, from https://doi.org/10.69645/LAEP3236.Export Citation (RIS)
Publication History
Extended-form Case Study
Walmart: stock valuation and real options with Jet.com
Published on July 31, 2022
9 min
Transcript
Please wait while the transcript is being prepared...
0:00
Hello. I'm Professor
Mike MacDonald.
I'm a professor of finance
at Fairfield University
in Fairfield, Connecticut.
Today, I'd like to talk
to you about the concept
of real options and how it
can impact stock valuation.
Specifically, we'll look at
this topic through the lens
of Walmart's buyout of Jet.com.
0:24
Now, you might be familiar
with the concept of options.
We think about options
in an investment context
as it relates to puts and
calls and things like that.
All real options are
related to this idea.
The basic concept with
an option is that it
gives the holder the
ability to decide
whether or not to take
an action in the future,
in exchange for a small
upfront cost today.
Options, as I said, are typically
associated with stocks,
but corporations also
use this concept
through what we call
'real options'.
A real option is a choice
made available to managers
of a company concerning business
investment opportunities.
We refer to it as 'real'
because it typically references
projects involving
a tangible asset
instead of a
financial instrument.
That's the basic idea.
1:15
Let's set the stage.
Now, you might be
familiar with Walmart.
They're the world's largest
retailer by dollar volume of sales.
Today, Walmart has a very robust
online e-commerce business.
But if we rewind the clock,
they did not have this strength,
even as recently as 2015.
Instead, the firm had a
slow-growing stable offline
and brick-and-mortar presence,
but it was actually
losing very badly
in e-commerce to Amazon.