Walmart shares rose on Thursday, lifting the retailer's market value to more than $500 billion for the first time, after it posted better-than-expected first-quarter earnings and raised its annual sales and profit forecasts.
Its shares rose 7%, the biggest increase since March 2020, to close at an all-time high of US$64. The stock jump added approximately $34 billion in value, giving the company a market capitalization of $515.8 billion.
Reaching $500 billion in market value is a sign of Walmart's growing dominance, according to Matt Maley, chief market strategist at Miller Tabak.. He noted that Walmart has done a better job than many of its retail peers in building its online business. which should help it attract more buyers and retain the higher-income customers it has gained even as inflation cools.
Walmart remains the largest company in the S&P 500 Consumer Staples Index by market value, and is the 14th largest in the S&P 500 Index. Procter & Gamble is the next largest consumer staples company with $396 billion. Peers Costco Wholesale Corp. and Target are worth approximately $352 billion and $74 billion, respectively.
While the company is not immune to retail industry headwinds, including a pressured American consumer, “we believe Walmart's initiatives and stock rise set it apart and that its scale/balance sheet provides favorable positioning,” he wrote. Evercore ISI analyst Greg Melich said in a note. following results.
