Market value surpasses $1 trillion! Walmart completes a "profound transformation of a traditional retail company," stock price doubles in two years.

Walmart’s market capitalization surpassed $1 trillion on Tuesday, making it the first traditional retailer to reach this milestone and joining the elite club previously dominated by tech giants. The Arkansas-based retail giant’s stock price has more than doubled over the past two years, outperforming the S&P 500 index. There are currently nine U.S.-listed companies with a market value of over $1 trillion. Among them, Walmart and Berkshire Hathaway are the only two non-tech U.S. companies to exceed this valuation; the rest are all technology firms. This achievement marks the success of Walmart’s decade-long transformation. The company has invested tens of billions of dollars in developing its e-commerce business, making it a formidable rival to Amazon. Last year, its online business turned a profit for the first time, and it’s expected to announce annual e-commerce sales of around $140 billion when it reports earnings this month. On Tuesday, Walmart’s stock price closed up 2.9% at $127.71, bringing its market cap to $1.018 trillion. This milestone coincides with the first week of new CEO John Furner, who succeeded Doug McMillon after over a decade at the helm. E-commerce business becomes a growth engine At the heart of Walmart’s transformation is the rapid expansion of its e-commerce business. Analysts predict that the company will report annual revenue of more than $700 billion this month. However, according to Visible Alpha data, Amazon’s revenue is expected to surpass Walmart’s for the first time. Nevertheless, Walmart has made significant progress in the e-commerce sector. The company can now offer same-day delivery service to 95% of U.S. households. Last year, its e-commerce division turned profitable for the first time as a standalone unit—a moment investors have waited years for. Morgan Stanley retail analyst Simeon Gutman said, “The changes at Walmart over the past decade are the most profound transformation we have seen in a retail company.” He noted the growth of both Walmart and Amazon poses challenges for competitors. Tech investment drives revaluation Walmart’s embrace of artificial intelligence and automation has attracted investors’ enthusiasm for tech stocks. The company has partnered with OpenAI and Google to integrate online shopping into their search chatbots. Walmart’s app features its own chatbot, Sparky, which can recommend products and help customers make purchases based on queries. David Schick, managing partner at research firm Optimal Advisory, said the “combination of workforce, sourcing, and technology” underpins Walmart’s success. He added that the company has benefited from “investing during uncertain times,” while competing against “strong” rivals like Amazon and Costco. Investment in automation has brought cost savings. Despite revenue growth, Walmart’s global workforce has remained at around 2.1 million in recent years. In December last year, Walmart switched its stock listing from the New York Stock Exchange to Nasdaq and joined the tech-heavy Nasdaq 100 index, attracting passive funds that track the benchmark. Decade-long transformation overcomes investor skepticism Ten years ago, Walmart’s success was far from assured. At the time, Amazon was growing rapidly, and newly appointed CEO McMillon invested billions to raise employee wages, improve stores, and grow online operations. Investors were watching to see if these investments would pay off. At the end of 2016, Walmart’s market value was only $212 billion. According to sources, Warren Buffett’s Berkshire Hathaway sold most of its long-held Walmart shares that year and exited entirely by 2018. Buffett reportedly told McMillon when asked about the sale: “Retail has changed too much. I don’t think I understand it as well as I need to.” Afterward, Walmart’s sales soared, first fueled by e-commerce, then the pandemic, and more recently by consumers seeking low prices in an inflationary environment. The company has worked to offer more products appealing to high-income shoppers, such as fashionable small appliances and private-label foods. Valuation remains below tech giants Walmart’s market cap still lags far behind e-commerce powerhouse Amazon’s $2.6 trillion. Within the trillion-dollar club, Nvidia leads with about $4.4 trillion, followed by Apple, Microsoft, Amazon, Alphabet, and Broadcom. As a major U.S. goods importer, Walmart has been dealing with tariffs imposed by President Trump over the past year. According to Jefferies, Walmart and its suppliers absorbed about two-thirds of the tariff costs on general merchandise, passing the remaining third on to consumers. Walmart executives say its lower prices are an opportunity to take market share from competitors. The surge in Walmart’s valuation will increase the wealth of the Walton family, the company's largest shareholders. Collectively, they own 44% of Walmart stock, now worth over $440 billion. Founded by Sam Walton in 1962 as a single retail store, Walmart has grown to nearly 11,000 stores worldwide. Risk warning and disclaimer The market carries risk; investment requires caution. This article does not constitute individual investment advice, nor does it take into account the specific investment goals, financial situation, or needs of any particular user. Users should consider whether the opinions, views, or conclusions herein are suitable for their specific circumstances. Investing based on this is at your own risk.