Walmart shares hit an all-time high
Walmart shares have rocketed since it released its quarterly earnings report. Will they continue on an upward trajectory?


Shares in US retailer Walmart, deemed a “bellwether” for the US consumer, have reached an all-time peak, propelling its market value above $500bn, says Alexandra White in the Financial Times. The bounce is due to an unexpectedly positive quarterly report.
The company boasted revenues of $161.5bn, while net income jumped to $5.1bn thanks to “lower markdowns and better inventory management”. And the firm’s outlook remains “rosy” owing to “stubborn inflation”, prompting wealthier consumers to visit the store.
Walmart certainly seems to be “benefiting from more affluent households trading down”, a trend that has left rivals with a more “middle market” strategy “exposed”, says Hargreaves Lansdown’s Sophie Lund-Yates. But it is also looking to the future, expanding its offering of goods in the hope that “as inflation eases, customers will also be more likely to start splashing the cash on discretionary, non-food items, such as electronics and clothing”.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Broadening the range of products on offer is a sensible strategy given that getting people to buy a new dress “is an easier ask than convincing people to trade back up to branded butter if they’re satisfied with the cheaper option”.
How does Walmart compare to other US retailers?
Walmart’s success stands in marked contrast to the lacklustre results of other major retail brands, such as Starbucks and McDonald’s, which both recently missed analysts’ expectations, says Aimee Donnellan on Breakingviews.
They have been victims of their own “greedflation”, with McDonald’s increasing its gross profit margin from 51% in 2020 to 62% in 2023, while Starbucks’ margin climbed from 16% to 24%. Walmart’s, at 24%, has remained steady.
Starbucks and McDonald’s have been punished: their forward earning multiples are now below pre-Covid levels, while Walmart’s is higher.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
-
Which platforms will offer crypto ETNs?
Crypto ETNs will soon once again be available to UK investors. We reveal the investment platforms planning to offer them to customers.
-
Healthcare stocks look cheap, but tread carefully
Shares in healthcare companies could get a shot in the arm if uncertainty over policy in the US wanes, but are they worth the risk?
-
Healthcare stocks look cheap, but tread carefully
Shares in healthcare companies could get a shot in the arm if uncertainty over policy in the US wanes, but are they worth the risk?
-
The Palace of Westminster is falling down
The Palace of Westminster is in need of repair, but the bill is prohibitive, says Simon Wilson
-
'It’s time to buy British equities'
Opinion There is no better place to start investing in UK equities than with two of MoneyWeek’s favourite investment trusts, says Max King
-
Sotheby’s fishes for art collectors – will it succeed?
Sotheby’s is seeking to restore confidence in the market after landing Leonard Lauder's art collection, including Gustav Klimt's Portrait of Elisabeth Lederer
-
How to cash in on overlooked British bargains offering both income and growth
Opinion Sue Noffke, manager of the Schroder Income Growth Fund, selects three UK stocks where she’d put her money
-
Beazley: a compelling specialist insurer
The insurer Beazley is unusually profitable at present, and that looks set to continue. The stock is also a valuable portfolio diversifier, says Jamie Ward
-
The problem with renewables trusts
The value of assets owned by renewables trusts is far more volatile than investors expected
-
To hedge or not to hedge, that is the question
The mechanics of hedging are very logical, but deciding when to add a hedge is rarely a simple decision