Walmart's AI triumph revealed - shares scaling record heights
Walmart Soars to New Heights: AI, Delivery, and Partnerships Drive Growth
Walmart, the American retail giant, has once again proven its resilience and potential for growth. The company's stock hit an all-time high on Wednesday, breaking above its February high, and is now back on the AKTIONÄR's recommendation list.
Analyst Robert Ohmes of Mizuho Securities raised his price target for Walmart from $120 to $125, reflecting his optimistic outlook for the company. This bullish sentiment is not unfounded, given Walmart's strong performance and promising future prospects.
One of Walmart's key advantages lies in its vast customer base. With two-thirds of its sold products made in the USA, the company is less susceptible to tariffs. Moreover, Walmart serves 95% of its customers within three hours and 25% within 30 minutes, giving it a significant edge in speed and freshness over competitors.
The momentum for Walmart's stock is not just driven by its strong performance, but also by analysts' AI fantasies. Bank of America has dubbed Walmart the market leader in retail AI, and the company is leading in "agent-based AI retailing." Walmart's AI agent, Sparky, has shown strong results in tests and is expected to take action soon.
Walmart's AI capabilities are not limited to its online operations. The company is also making strides in its delivery business, which Ohmes sees as having great potential. In fact, the delivery business is already profitable for Walmart.
Walmart's appeal extends beyond its AI and delivery capabilities. The company has made itself interesting in the Large Language Model (LLM) partnership space by leveraging its massive scale, access to data from 180 million customers, and its ability to serve customers both online and offline. This makes it an attractive partner for companies in the LLM area.
The new co-branded credit card with Synchrony could also boost Walmart's membership growth. This card, which offers rewards for Walmart purchases, is expected to attract more customers to the company's membership programme.
Interestingly, Walmart is increasingly attracting younger customers who prefer private labels. This shift in demographics bodes well for the company's future, as it diversifies its customer base and reduces its reliance on branded products.
Despite the stock's impressive performance, Ohmes maintains a buy rating for Walmart's stock. With its strong performance, innovative AI capabilities, profitable delivery business, and attractive partnership opportunities, Walmart remains a compelling investment opportunity for AKTIONÄRs. The company is not just a retail giant, but also a tech leader and a partner of choice in the ever-evolving world of retail.
Read also:
- Ford Discontinues Popular Top-Seller in Staggering Shift, Labeled as a "Model T Event"
- 2025 Witnesses a 27% Surge in Worldwide Electric Vehicle Sales, Despite Opposition to Electrification Policies in the U.S.
- Recorded surge in electric vehicle registrations during the initial half of the year
- Dubai-bound: Omega Seiki Mobility, an electric vehicle company from India, prepares for assembly establishment
