Retail giant Walmart (WMT) joined the $1T market-cap club today, the first traditional grocer to ever hit those lofty heights.
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Walmart Joins Tech Giants
It joins tech stalwarts such as Amazon (AMZN), Nvidia (NVDA) and Microsoft (MSFT) on the magic mark, with its shares being powered higher by growth in online demand as well as its embrace of AI and automation. However, its traditional value retailing strengths have also come to the fore in times of faltering consumer confidence.
Shares in Walmart were up over 2.2% in early trading. They are now up nearly 14% in the year-to-date and by 24% in the last 12 months.
It has been surging because of its investment in AI such as its GenAi chatbot Sparky and new partnerships such as with ChatGPT creator OpenAI. Other moves include a push towards automation including plans to spend close to $1 billion over the next decade automating its e-commerce and fulfillment processes.
This includes installing numerous AI-powered Ranpak (PACK) AutoFill systems across its five Next Generation Fulfillment Centers. The aim is to speed up the fulfillment process for customers, reduce packaging waste, and simplify work for its staff.
Value at Heart
This technology tilt led the company to switch its listing from the New York Stock Exchange to the Nasdaq last December.
“Moving to Nasdaq aligns with the people-led, tech-powered approach to our long-term strategy. Walmart is setting a new standard for omnichannel retail by integrating automation and AI,” said John David Rainey, Walmart’s chief financial officer, at the time.
E-commerce growth has also been part of its success story. E-commerce Q3 sales in the U.S. accelerated with 28% growth “reflecting strength in store-fulfilled delivery, advertising and marketplace.” International growth was led by Flipkart, China, and Walmex with e-commerce demand up 26%.
But to millions of Americans Walmart remains at heart a value, everyday grocer selling staples from bread to bananas. That trust has been very important during the consumer confidence crisis in the U.S. over the last few months.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 25 Buy and 1 Hold ratings. Its highest price target is $135. WMT stock’s consensus price target is $127.39, implying a 0.42% upside.
