Walmart's Big News Was Easy to Miss Amid the Market Selloff
The retail giant gained 6.5% on Thursday as online sales deliver. Here's what to know.
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With all the excitement this week surrounding Nvidia (NVDA) and the delayed jobs report, Walmart’s (WMT) big news was easy to miss.
Shares of Walmart roared higher to a 6.5% gain on Thursday, after the Bentonville, Arkansas-based retail giant delivered a solid earnings report for the just-ended quarter.
Not only did Walmart report earnings and revenue above analysts’ estimates, the world’s largest retailer raised its full-year guidance for both earnings and sales. Walmart also highlighted a stellar 27% increase in online sales.
Ecommerce Is Growing Quickly
That last figure should be very satisfying for Walmart bulls, because the retailer has massive growth potential in the online space. According to SellersCommerce, one-third of the world’s population now shops online.
In 2025, Amazon (AMZN) dominates the U.S. ecommerce market with a 37.6% market share. Walmart trails far behind in second place, with a market share of just 6.4%. Apple (AAPL) (3.6%), eBay (EBAY) (3%), and Target (TGT) (1.9%) round out the top 5 (read our latest analysis on Target here).
For Walmart, this means there is plenty of room for online growth. The retail giant has responded by growing online sales by over 20% for seven consecutive quarters.
Walmart’s Focus on Fast Delivery
Walmart also saw a nearly 50% increase in store-fulfilled delivery, after a nearly 50% increase during the previous quarter. This means that Walmart is leveraging its brick and mortar stores, which were once thought to be detrimental in light of Amazon’s business model, into mini-distribution centers.
The physical locations are useful, as about one-third of deliveries from Walmart stores are arriving in less than three hours. This creates additional demand, as customers begin to realize how quickly the deliveries are likely to arrive.
Bullish Price Action
As stocks gyrated wildly on Thursday, Walmart held its gains. By Thursday’s close, Walmart had tacked on 6.5%, while the S&P 500 lost 1.5%. As of Thursday’s close, Walmart was less than 2% away from its all-time high of $109, set on October 15 (point A).
Walmart’s recent strength could be partially due to a rotation away from tech names. Tech stocks have come under fire in recent weeks, as some investors are questioning the valuations created by the AI boom.
Walmart continues to show promise, as Thursday’s move occurred on high turnover (point B). In fact, Walmart’s volume on Thursday was its heaviest in three months (point C), when the company last reported earnings.
The stock’s 50-day (blue) and 200-day (red) moving averages continue to climb, indicating a bullish trend. Walmart hasn’t traded below its 200-day moving average since April.
Year-to-date, Walmart has gained 19%, while the benchmark S&P 500 has climbed 11.5%. While Walmart’s chart doesn’t offer an eye-catching price target, it might provide something better — a steady, non-tech name that is outperforming the broader market.
At the time of publication, Ponsi was long WMT, NVDA, and AAPL.
