/images/ppid_59c68470-image-177014254305695630.webp)
What is the story about?
Shares of Walmart hit a $1 trillion market valuation for the first time on Tuesday, making it the first retailer to join an elite group of U.S. companies dominated by technology heavyweights.
The Bentonville, Arkansas-based company has seen its stock rally nearly 26% over the past year. The milestone follows Walmart's aggressive push into artificial intelligence and automation, as the company pivots from a traditional brick-and-mortar giant into a digital-first powerhouse.
"They've gone from just being the local retailer for good prices to really embracing technology. It's been a massive digital business transformation that this company has gone through over the last five years," said Eric Clark, chief investment officer at Accuvest Global Advisors.
Walmart's ascent comes at a time when U.S. households, particularly low- and middle-income earners, face mounting financial strain from persistent inflation and a cooling job market. However, the retailer has successfully captured a larger share of spending from wealthier consumers who are increasingly drawn to its faster delivery times and expanded online offerings in discretionary categories like apparel and furniture.
The company has poured billions into its supply chain, utilizing AI to improve produce freshness and delivery logistics. Brian Mulberry, senior client portfolio manager at Zacks Investment Management, noted that Walmart is emerging as "the new AI giant" due to its ability to weave technology into operations to cut costs and capture more of the consumer's wallet.
The historic valuation comes just two weeks after Walmart replaced British drugmaker AstraZeneca in the tech-focused Nasdaq-100 Index, which tracks the most valuable non-financial companies.
The $1 trillion club: Current US members
Walmart joins a select roster of American companies that have surpassed the trillion-dollar mark, a list primarily led by the "Magnificent Seven" tech firms:
The Bentonville, Arkansas-based company has seen its stock rally nearly 26% over the past year. The milestone follows Walmart's aggressive push into artificial intelligence and automation, as the company pivots from a traditional brick-and-mortar giant into a digital-first powerhouse.
"They've gone from just being the local retailer for good prices to really embracing technology. It's been a massive digital business transformation that this company has gone through over the last five years," said Eric Clark, chief investment officer at Accuvest Global Advisors.
Walmart's ascent comes at a time when U.S. households, particularly low- and middle-income earners, face mounting financial strain from persistent inflation and a cooling job market. However, the retailer has successfully captured a larger share of spending from wealthier consumers who are increasingly drawn to its faster delivery times and expanded online offerings in discretionary categories like apparel and furniture.
The company has poured billions into its supply chain, utilizing AI to improve produce freshness and delivery logistics. Brian Mulberry, senior client portfolio manager at Zacks Investment Management, noted that Walmart is emerging as "the new AI giant" due to its ability to weave technology into operations to cut costs and capture more of the consumer's wallet.
The historic valuation comes just two weeks after Walmart replaced British drugmaker AstraZeneca in the tech-focused Nasdaq-100 Index, which tracks the most valuable non-financial companies.
The $1 trillion club: Current US members
Walmart joins a select roster of American companies that have surpassed the trillion-dollar mark, a list primarily led by the "Magnificent Seven" tech firms:
- Nvidia (NVDA.O): $4.5 trillion
- Alphabet (GOOGL.O): $4.1 trillion
- Apple (AAPL.O): $3.9 trillion
- Microsoft (MSFT.O): $3.1 trillion
- Amazon (AMZN.O): $2.6 trillion
- Meta (META.O): $1.8 trillion
- Broadcom (AVGO.O): $1.6 trillion
- Tesla (TSLA.O): $1.6 trillion
- Berkshire Hathaway (BRKa.N): $1.0 trillion
/images/ppid_59c68470-image-177014002722588046.webp)
/images/ppid_a911dc6a-image-17701391513472794.webp)
