Wal-Mart is raising minimum wage to $11 and dishing out a one-time bonus for employees, citing the Trump Tax Reform plan. Karen Short, Managing Director at Barclays, was with us to discuss the ramifications of the decision.
Short estimates that Wal-Mart could generate $4 billion in incremental free cash flow due to the tax reform, and adds that the wage hike is just of portion of the allocation. The analyst says that the "strong will get stronger" and other retailers will have to follow Wal-Mart's lead.
Tax reform narrows the advantage Amazon has over traditional retailers such as Wal-Mart, says Short. She says Wal-Mart has an advantage over Amazon because it is the largest grocer with low prices. Short also adds that the stigma surrounding Wal-Mart products has dissipated and is no longer a "turnoff" to millennials because the products have gotten better.
Tesla reported a surprise increase in sales in the third quarter as the electric car maker likely benefited from a rush by consumers to take advantage of a $7,500 credit before it expired on Sept. 30. The company reported Thursday that sales in the three months through September rose 7% compared to the same period a year ago. The gain follows two quarters of steep declines as people turned off by CEO Elon Musk’s foray into right-wing politics avoided buying his company’s cars and even protested at some dealerships. Sales rose to 497,099 vehicles, compared with 462,890 in the same period last year.
Tom’s Guide Editor-in-Chief Mark Spoonauer breaks down Apple & Amazon's latest product drops—what's hot, what's hype, and what really matters for users.
InnerPlant CEO Shely Aronov reveals how engineered crops like soybeans and corn emit signals when stressed—offering farmers early warnings to boost yields.
Payoneer CEO John Caplan discusses the implications of $100K H1B visa requirements—and how they could reshape tech talent, hiring, and U.S. competitiveness.
Electronic Arts, the video game maker of “Madden NFL,” “The Sims,” and other popular titles, is being acquired and taken private for about $52.5 billion in what could become the largest-ever buyout funded by private-equity firms.
