Walmart’s Business Growth Highlights
Walmart (NASDAQ: WMT) has seen significant growth in its advertising segment, which increased by 53% globally and 33% in the U.S. during the fiscal third quarter ending October 31. The company’s stock has risen over 29% as of December 14, 2023, putting its market cap at approximately $930 billion, with a goal to reach the trillion-dollar mark by 2026, requiring a growth of around 7.5%.
E-commerce and Delivery Expansion
In its fiscal third quarter, Walmart’s U.S. e-commerce revenue grew by 28%, while global e-commerce revenue increased by 27%, significantly outpacing total revenue growth of 5.8%. Walmart’s ability to utilize its network of over 10,000 stores as delivery hubs positions it to offer same-day delivery, enhancing its competitive edge against Amazon.
Future Outlook and Valuation
Walmart’s forward price-to-earnings ratio stands at approximately 44.2, indicating it is being valued like a high-growth tech company rather than a traditional retailer. This premium valuation suggests limited room for error, yet the company remains optimistic about continued growth in advertising and e-commerce as key revenue drivers through 2026.
