Walmart cracks into the $1 trillion club
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- Walmart's stock price rose about 3% on Tuesday, pushing the retailer's valuation to $1 trillion.
- The company has boosted its shares by redefining itself with an emphasis on tech and convenience.
- A recent leadership transition — including a new CEO — signals a future focus on AI and e-commerce.
The latest entrant to the four-comma club doesn't make software or semiconductors — it sells groceries.
Walmart stock closed 3% higher on Tuesday at $127.71, bringing the company to a market valuation of $1.02 trillion — a first for any traditional retailer.
Wall Street has been a big fan of the stock in recent years, driving the price up by more than 28% from a year ago, significantly outpacing the S&P 500's 16% gain over the same period.
Driving the valuation are the company's big bets on AI and automation as it continues to win new customers online and in-store.
Years of inflation and economic uncertainty have also played to Walmart's strengths, with customers of all income levels looking to its stores for the lowest prices around.
Looking ahead, the company is set to lean even harder into AI and e-commerce following a leadership transition over the weekend that put former US division CEO John Furner in charge of the enterprise and former e-commerce chief David Guggina in Furner's old job.