In recent news, Walmart (WMT) has announced the closure of 51 health centers and the discontinuation of its virtual care services. This decision was made due to a lack of sustainable business model for the retail giant. Following this announcement, UnitedHealth (UNH) also shut down its Optum virtual health business.
Walmart initially launched its health centers in 2019 as part of a larger effort to expand its health services offerings. There were rumors circulating at the time that Walmart may acquire Humana (HUM). On the other hand, Amazon (AMZN) has been more aggressive in the health clinic business following its $3.9 billion acquisition of One Medical.
Despite the closure of the health centers, Walmart still maintains nearly 4,600 pharmacies in its stores and has been expanding their range of services. The company also operates over 200 vision centers. Walmart’s fiscal Q1 earnings are expected on May 16, while CVS Health (CVS) will report its Q1 results on Wednesday morning.
The retreat from virtual care by UnitedHealth and Walmart reflects the challenges faced by companies like Teladoc (TDOC) in the rapidly evolving healthcare industry. This decision marks a significant shift in the retail giant’s strategy towards traditional brick-and-mortar stores and away from online healthcare services.
In stock market activity, Walmart’s stock dipped slightly, while Amazon and CVS saw modest gains. Investors may consider a move past 60.89 as an early entry opportunity for buying shares of Walmart stock as it forms a flat base with a buy point at 61.66 on its 50-day moving average. For those looking to stay up-to-date on stock market trends and trading decisions, IBD’s The Big Picture column is an excellent resource, along with joining IBD Live each morning for stock tips before the market opens to enhance your trading strategy through IBD Digital’s premium stock lists, tools, and analysis.