Walmart's Digital Ads and Marketplace Sales Surge Significantly
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Yahoo Finance
- Digital Advertising Growth: Walmart's global advertising revenue surged 37% last quarter, with Walmart Connect achieving a 44% increase, indicating the company's successful digital transformation and further solidifying its leadership in the retail market.
- Marketplace Sales Surge: Walmart's marketplace sales jumped nearly 50%, marking the best performance in 10 quarters, with e-commerce now accounting for 23% of total net sales, demonstrating the effectiveness of its multi-channel sales strategy and enhancing its market competitiveness.
- Strong Buyback Program: Walmart authorized a $30 billion stock repurchase program in February 2026, with $28.2 billion remaining, which is expected to further boost earnings per share and enhance investor confidence, while the company reported free cash flow of $14.92 billion, up 17.88%.
- Long-Term Growth Potential: Despite facing economic slowdown risks, Walmart's U.S. same-store sales rose 4.1%, gaining broad market share particularly among high-income households, showcasing its resilience and sustained growth potential across various economic cycles.
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Analyst Views on WMT
Wall Street analysts forecast WMT stock price to rise
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 117.740
Low
119.00
Averages
125.75
High
136.00
Current: 117.740
Low
119.00
Averages
125.75
High
136.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Walmart Faces Pressure from Rising Fuel Prices
- Impact of Rising Fuel Prices: The ongoing Iran war has led to higher global fuel prices, which particularly affects Walmart's lower-income customer base, potentially reducing their discretionary spending and impacting the company's sales performance.
- Decline in Fuel Purchases: Walmart's CFO noted that customers are filling up less than 10 gallons for the first time, indicating financial distress among lower-income households, which may lead to decreased consumer spending.
- Poor Stock Performance: Since the earnings report on May 21, Walmart's stock has declined by approximately 11%, primarily due to underwhelming guidance for fiscal year 2027, raising concerns about future growth prospects among investors.
- Valuation Risks: With a price-to-earnings ratio of 41.16, significantly higher than the Nasdaq-100's 36.30, and disappointing earnings expectations, Walmart's stock appears overvalued, suggesting that investors should approach with caution.
See More
Walmart+ Membership Program Expands Internationally to Canada
- International Expansion: Walmart has launched its Walmart+ membership program in Canada for the first time, priced at C$8.97 ($6.46) per month or C$89 annually, replacing the Delivery Pass introduced in 2023, indicating Walmart's commitment to international growth.
- Rich Service Offerings: The new membership includes same-day delivery on orders over C$35, free shipping with no minimum order, and a complimentary Crave Standard with Ads streaming subscription, making it the only membership program to offer this benefit, enhancing Walmart's competitive edge.
- Convenience Features: Members can enjoy express delivery within two hours, free in-store pickup, and the ability to add items to scheduled orders up to three hours before delivery, aimed at improving the shopping experience for busy families.
- US Market Integration: In the US, Walmart has begun integrating restaurant delivery into its Express Delivery service, starting with Subway, allowing customers to order meals for delivery in 30 minutes or less, further expanding its service offerings and market competitiveness.
See More
Walmart's Digital Ads and Marketplace Sales Surge Significantly
- Digital Advertising Growth: Walmart's global advertising revenue surged 37% last quarter, with Walmart Connect achieving a 44% increase, indicating the company's successful digital transformation and further solidifying its leadership in the retail market.
- Marketplace Sales Surge: Walmart's marketplace sales jumped nearly 50%, marking the best performance in 10 quarters, with e-commerce now accounting for 23% of total net sales, demonstrating the effectiveness of its multi-channel sales strategy and enhancing its market competitiveness.
- Strong Buyback Program: Walmart authorized a $30 billion stock repurchase program in February 2026, with $28.2 billion remaining, which is expected to further boost earnings per share and enhance investor confidence, while the company reported free cash flow of $14.92 billion, up 17.88%.
- Long-Term Growth Potential: Despite facing economic slowdown risks, Walmart's U.S. same-store sales rose 4.1%, gaining broad market share particularly among high-income households, showcasing its resilience and sustained growth potential across various economic cycles.
See More
Walmart Faces Pressure from Rising Gas Prices
- Consumer Spending Trends: Walmart's CFO reported that customers are filling up less than 10 gallons for the first time, indicating that lower-income shoppers are becoming more budget-conscious due to rising gas prices, which could lead to reduced discretionary spending and negatively impact overall sales performance.
- Impact of Fuel Prices: The increase in global fuel prices due to the Iran war is particularly hard on Walmart's lower-income customers, potentially suppressing their spending on non-essential items and putting pressure on Walmart's financial results.
- Revised Financial Outlook: Walmart expects net sales growth of only 3.5% to 4.5% for fiscal year 2027, with adjusted earnings per share projected at $2.75 to $2.85, falling short of market expectations of $2.91, resulting in an approximately 11% decline in stock price since May 21.
- Valuation Concerns: With a price-to-earnings ratio of 41.16, Walmart is significantly more expensive than the Invesco QQQ Trust's 36.30, suggesting overvaluation, and given the uncertainty surrounding fuel prices, investors are advised to approach Walmart stock with caution.
See More
Walmart Faces Pressure from Rising Fuel Prices
- Impact of Rising Fuel Prices: The ongoing Iran war has led to increased fuel prices, which particularly affects Walmart's lower-income customers, potentially reducing their discretionary spending and impacting overall sales performance for the company.
- Decline in Fuel Purchases: Walmart's CFO noted that customers are now filling up with less than 10 gallons for the first time, indicating the financial strain on lower-income households due to high gas prices, which could lead to a decrease in sales for the company.
- Poor Stock Performance: Since the earnings report on May 21, Walmart's stock has declined by approximately 11%, primarily due to the company's underwhelming sales guidance for fiscal year 2027, raising concerns about its future growth prospects among investors.
- Valuation Risks: With a price-to-earnings ratio of 41.16, significantly higher than the tech sector's 36.30, and disappointing earnings expectations, investor confidence in Walmart's stock may weaken, increasing the risk of future stock price volatility.
See More
Walmart Expands Fast Delivery with Subway Meals Integration
- Delivery Service Expansion: Walmart integrates Subway meal delivery into its app, allowing customers in select areas to receive orders in as little as 30 minutes, enhancing the diversity of the shopping experience.
- Partner Advantage: As Walmart's largest in-store restaurant tenant, Subway's inclusion enables Walmart to leverage existing resources to test the delivery model, thereby strengthening its competitive position.
- Coverage Expansion: The service is currently live in select stores across Connecticut, Florida, Georgia, Ohio, Pennsylvania, and Texas, with plans to expand to about 1,400 stores by late summer, indicating Walmart's growth potential.
- Market Competition Pressure: Should Walmart successfully scale its restaurant delivery service, it could exert pressure on competitors like DoorDash and Uber Eats, potentially reshaping the delivery market landscape.
See More
Walmart Faces Pressure from Rising Fuel Prices
- Impact of Rising Fuel Prices: The ongoing Iran war has led to higher global fuel prices, which particularly affects Walmart's lower-income customer base, potentially reducing their discretionary spending and impacting the company's sales performance.
- Decline in Fuel Purchases: Walmart's CFO noted that customers are filling up less than 10 gallons for the first time, indicating financial distress among lower-income households, which may lead to decreased consumer spending.
- Poor Stock Performance: Since the earnings report on May 21, Walmart's stock has declined by approximately 11%, primarily due to underwhelming guidance for fiscal year 2027, raising concerns about future growth prospects among investors.
- Valuation Risks: With a price-to-earnings ratio of 41.16, significantly higher than the Nasdaq-100's 36.30, and disappointing earnings expectations, Walmart's stock appears overvalued, suggesting that investors should approach with caution.
See More
Walmart+ Membership Program Expands Internationally to Canada
- International Expansion: Walmart has launched its Walmart+ membership program in Canada for the first time, priced at C$8.97 ($6.46) per month or C$89 annually, replacing the Delivery Pass introduced in 2023, indicating Walmart's commitment to international growth.
- Rich Service Offerings: The new membership includes same-day delivery on orders over C$35, free shipping with no minimum order, and a complimentary Crave Standard with Ads streaming subscription, making it the only membership program to offer this benefit, enhancing Walmart's competitive edge.
- Convenience Features: Members can enjoy express delivery within two hours, free in-store pickup, and the ability to add items to scheduled orders up to three hours before delivery, aimed at improving the shopping experience for busy families.
- US Market Integration: In the US, Walmart has begun integrating restaurant delivery into its Express Delivery service, starting with Subway, allowing customers to order meals for delivery in 30 minutes or less, further expanding its service offerings and market competitiveness.
See More
Walmart's Digital Ads and Marketplace Sales Surge Significantly
- Digital Advertising Growth: Walmart's global advertising revenue surged 37% last quarter, with Walmart Connect achieving a 44% increase, indicating the company's successful digital transformation and further solidifying its leadership in the retail market.
- Marketplace Sales Surge: Walmart's marketplace sales jumped nearly 50%, marking the best performance in 10 quarters, with e-commerce now accounting for 23% of total net sales, demonstrating the effectiveness of its multi-channel sales strategy and enhancing its market competitiveness.
- Strong Buyback Program: Walmart authorized a $30 billion stock repurchase program in February 2026, with $28.2 billion remaining, which is expected to further boost earnings per share and enhance investor confidence, while the company reported free cash flow of $14.92 billion, up 17.88%.
- Long-Term Growth Potential: Despite facing economic slowdown risks, Walmart's U.S. same-store sales rose 4.1%, gaining broad market share particularly among high-income households, showcasing its resilience and sustained growth potential across various economic cycles.
See More
Walmart Faces Pressure from Rising Gas Prices
- Consumer Spending Trends: Walmart's CFO reported that customers are filling up less than 10 gallons for the first time, indicating that lower-income shoppers are becoming more budget-conscious due to rising gas prices, which could lead to reduced discretionary spending and negatively impact overall sales performance.
- Impact of Fuel Prices: The increase in global fuel prices due to the Iran war is particularly hard on Walmart's lower-income customers, potentially suppressing their spending on non-essential items and putting pressure on Walmart's financial results.
- Revised Financial Outlook: Walmart expects net sales growth of only 3.5% to 4.5% for fiscal year 2027, with adjusted earnings per share projected at $2.75 to $2.85, falling short of market expectations of $2.91, resulting in an approximately 11% decline in stock price since May 21.
- Valuation Concerns: With a price-to-earnings ratio of 41.16, Walmart is significantly more expensive than the Invesco QQQ Trust's 36.30, suggesting overvaluation, and given the uncertainty surrounding fuel prices, investors are advised to approach Walmart stock with caution.
See More
Walmart Faces Pressure from Rising Fuel Prices
- Impact of Rising Fuel Prices: The ongoing Iran war has led to increased fuel prices, which particularly affects Walmart's lower-income customers, potentially reducing their discretionary spending and impacting overall sales performance for the company.
- Decline in Fuel Purchases: Walmart's CFO noted that customers are now filling up with less than 10 gallons for the first time, indicating the financial strain on lower-income households due to high gas prices, which could lead to a decrease in sales for the company.
- Poor Stock Performance: Since the earnings report on May 21, Walmart's stock has declined by approximately 11%, primarily due to the company's underwhelming sales guidance for fiscal year 2027, raising concerns about its future growth prospects among investors.
- Valuation Risks: With a price-to-earnings ratio of 41.16, significantly higher than the tech sector's 36.30, and disappointing earnings expectations, investor confidence in Walmart's stock may weaken, increasing the risk of future stock price volatility.
See More
Walmart Expands Fast Delivery with Subway Meals Integration
- Delivery Service Expansion: Walmart integrates Subway meal delivery into its app, allowing customers in select areas to receive orders in as little as 30 minutes, enhancing the diversity of the shopping experience.
- Partner Advantage: As Walmart's largest in-store restaurant tenant, Subway's inclusion enables Walmart to leverage existing resources to test the delivery model, thereby strengthening its competitive position.
- Coverage Expansion: The service is currently live in select stores across Connecticut, Florida, Georgia, Ohio, Pennsylvania, and Texas, with plans to expand to about 1,400 stores by late summer, indicating Walmart's growth potential.
- Market Competition Pressure: Should Walmart successfully scale its restaurant delivery service, it could exert pressure on competitors like DoorDash and Uber Eats, potentially reshaping the delivery market landscape.
See More
