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- Walmart hits $1 trillion market cap (upi.com)
Walmart Breaks into the Exclusive $1 Trillion Club
Bentonville, AR – Retail giant Walmart officially joined the elite “trillion-dollar club” this Tuesday, February 3rd, as its stock saw a 1% increase, pushing the company’s market capitalization past the monumental threshold. Already recognized as the world’s largest retailer, Walmart’s latest achievement solidifies its position as a go-to destination for budget-conscious shoppers in a tightening economy.
Walmart now stands among a select group of companies to reach this valuation, a list predominantly occupied by tech behemoths. Other members include Nvidia ($4.5 trillion), Alphabet ($4.2 trillion), Apple ($3.9 trillion), Microsoft ($3.1 trillion), Amazon ($2.6 trillion), Meta ($1.8 trillion), Broadcom ($1.6 trillion), Tesla ($1.3 trillion), and Berkshire Hathaway ($1.1 trillion).
The company’s robust performance has been fueled by significant growth in its e-commerce sector, with U.S. online sales surging by 28% last quarter and global e-commerce experiencing a 27% rise. Walmart projects a net sales increase of 4.8% to 5.1% for the fiscal year, building on the previous year’s $674 billion. Over the past year, Walmart’s stock has climbed more than 24%, with an additional 11% gain recorded so far this year.
A strategic move in December saw Walmart transition its stock listing from the New York Stock Exchange to Nasdaq, a decision that appears to have positively impacted its share performance. “Moving to Nasdaq aligns with the people-led, tech-powered approach to our long-term strategy,” stated Walmart Chief Financial Officer John David Rainey at the time.
While the milestone is significant, some analysts express caution. Morningstar analyst Brett Husslein commented, “To justify this current share price, they’d have to be achieving margin expansion that would exceed their historical highs.
That’s going to be challenging. But at the same time, we’re forecasting a fair amount of operating margin expansion as well.”
In related news, Walmart announced in November that its long-serving President and CEO, Doug McMillon, would be retiring. John Furner officially stepped into the role this past Sunday, marking a new chapter for the newly minted trillion-dollar company.
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- Walmart hits $1 trillion market cap (upi.com)