Walmart’s online growth and tech edge are helping it win market share, expand margins, and please Wall Street—plus, a Nasdaq move could bring billions more in investment.
What’s going on here?
Walmart’s profit machine is powering up again, boosted by booming e-commerce sales – and investors are eyeing even more upside as the retail giant gears up for a landmark move to the Nasdaq later this year.
What does this mean?
After a rocky start to 2025, Walmart’s adjusted operating income is on the mend, with the company’s surging online business and tech investments helping turnaround momentum. US comparable store sales climbed 4.5% – an impressive figure considering Walmart’s massive retail footprint. Morgan Stanley notes that Walmart’s scale, smart supply chain, and digital upgrades are letting it win over budget-conscious shoppers, hold onto its pricing edge, and strengthen its market lead even as inflation bites. Added growth from Walmart+, digital ads, and its expanding marketplace are widening the retailer’s lead. With e-commerce sales up 28% year over year and a Nasdaq shift on the horizon, the company could see more than $20 billion in new index fund demand, fueling fresh optimism on Wall Street. Morgan Stanley just bumped up its price target to $125, reflecting that view.
Why should I care?
For markets: Winning with scale and digital smarts.
Walmart’s rare ability to squeeze out higher margins and grow share despite rising prices sets it apart from the pack. Its profit gains aren’t coming just from brick-and-mortar stores – high-growth digital businesses and ad revenues are adding valuable new streams. The upcoming Nasdaq move could spark billions in new inflows from global index funds, potentially changing how the stock trades and attracting even more institutional investors.
The bigger picture: E-commerce raises the stakes for everyone.
Walmart’s tech-forward approach is piling pressure onto rivals both old and new. By widening its grocery price lead and using technology to boost efficiency, it’s setting a new bar for retail value. As Walmart draws in more customers and investors, its approach could reshape global retail and force competitors to raise their game fast.
