Walmart's big purchase is paying off

It has been just over one year since Walmart agreed to pay $3 billion to acquire, an e-commerce platform that was better known for its fundraising prowess than its consumer name recognition. It was viewed by many to be the largest acqui-hire of all time — focused on Jet’s founding CEO Marc Lore, who previously co-founded Quidsi (a.k.a. — and skepticism was




. Some went so far as to

call it

“a terrible mistake.”


Then came this past Tuesday, when Walmart publicly predicted 40% growth in e-commerce sales for the fiscal year ending January 2019, at a stable pace of profit growth. Shares climbed 4.47%, representing a

$10.75 billion

increase in market cap. Since then, shares have climbed another 2.4%.


Tuesday’s gain alone represents more than a 3x multiple on what Walmart paid to acquire And, yes, it remains at around around 3x even if we include subsequent Walmart e-commerce purchases like Bonobos, Modcloth, ShoeBuy and Moosejaw.


To be sure, e-commerce growth wasn’t Walmart’s only announcement on Tuesday. It also revealed plans for a large share buyback ($20b over two years), but it was that 40% growth figure that really drove the day.
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