Walmart Surpasses $1 Trillion in Market Value, Joining Big Tech in an Exclusive Club

Retail giant Walmart reached a stock market valuation of more than $1 trillion on Tuesday, a truly historic milestone on Wall Street that makes it the first company of its kind to achieve such a market value, on par with a select group of technology companies such as Microsoft and Apple.

According to the New York Times, the valuation jump is largely in response to strong growth in its digital business and the company's strategy to integrate automation and artificial intelligence into its operations.

Over the past year, Walmart's stock advanced nearly 28%, ahead of the 15% recorded by the S&P 500 in the same period.

The company, known for its low prices and extensive network of supercenters, has managed to broaden its customer base and attract higher-income consumers as well, mostly thanks to its online platform. Services such as in-store pickup without getting out of the vehicle, same-day delivery and the growth of its marketplace were decisive in this process of success also driven by a booming advertising business.

In its most recent quarterly report, Walmart reported a 27% increase in e-commerce sales and a 53% rise in advertising revenue, both indicators that reflect the company's shift to a more technological model.

Part of this transformation is supported by decisions made years ago to compete for the digital consumer, such as the purchase of Jet.com in 2016 and the acquisition of a majority stake in Flipkart in 2018.

The market is also watching the new leadership stage at the company closely. The record valuation comes just days after John Furner took over as CEO replacing Doug McMillon. His tenure is expected to accelerate Walmart's evolution into a technology-heavy retailer, including greater use of artificial intelligence assistants for online shoppers.

In addition to the digital push, the economic backdrop has also played in the company's favor. With persistent inflationand new tariffs putting pressure, in part, on household budgets, many consumers have stepped up their search for discounts, an arena in which Walmart maintains a competitive advantage.

"The company has successfully positioned itself not only as standing for strong pricing, but now also as a more convenient omnichannel retailer," Michael Baker, senior analyst at D.A. Davidson, told the NYT.