Walmart Joins $1 Trillion Club as Tech, Frugal Shoppers Fuel Gains
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(Bloomberg) — A rally in Walmart Inc. shares pushed its market capitalization past $1 trillion on Tuesday for the first time ever, vaulting the world’s largest retailer into a category typically occupied by Big Tech firms such as Nvidia Corp. and Alphabet Inc.
The stock rose as much as 1.6% as of 9:45 a.m. in New York trading, reaching an intraday record of $126 per share and lifting its market value to just over $1 trillion, according to data compiled by Bloomberg. The shares are up 12% this year, outpacing the S&P 500 Index’s 1.9% advance.
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The Bentonville, Arkansas-based chain — a longtime favorite of bargain-hunting consumers — has flexed its massive scale and supplier network to keep prices low and grab market share across the income spectrum. While Walmart has maintained its appeal to households looking for value, its online offerings are drawing new, wealthier shoppers seeking convenience.
“It’s been a massive digital transformation that Walmart’s gone through over the last few years,” said Eric Clark, chief investment officer at Accuvest Global Advisors. “They’ve pivoted away from being just a traditional brick-and-mortar retailer to using technology to drive more engagement.”
Recent investments in artificial intelligence have helped supercharge the stock’s advance. Walmart has been pushing to incorporate AI across its operations and is already using the technology to speed up tasks ranging from scheduling to supply-chain management.
Earlier this year, it announced a partnership with Alphabet Inc. to offer AI-enhanced shopping on Google’s Gemini platform, and recently teamed up with OpenAI to allow customers to browse and buy its products directly through ChatGPT. The company was added to the Nasdaq 100 Index last month, underscoring investors’ appetite for its tech ambitions.
The retailer is the biggest company in the S&P 500 Consumer Staples Index by market value, followed by Costco Wholesale Corp., Procter & Gamble Co. and Coca-Cola Co. It’s now also one of the few non-tech firms that are worth $1 trillion or more, along with Berkshire Hathaway Inc. and Saudi Aramco.
Walmart started as a single store in 1962 and quickly eclipsed competitors like Kmart and Sears. In the early 2000s, Walmart struggled to expand its e-commerce business, but became a formidable digital powerhouse consisting of delivery and membership divisions under former Chief Executive Officer Doug McMillon. It now sells everything from collectible trading cards to pre-owned Chanel bags on its website and is delivering online orders faster. Advertising and other non-retail operations are also fueling profit growth.
