Key Stats for Walmart Stock
- Price change for Walmart stock in last 6 months: -7%
- $WMT Stock Price as of Oct. 19: $119
- 52-Week High: $135
- $WMT Stock Price Target: $127
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What Happened?
Walmart (WMT) launched a $120-a-year membership bundle on Tuesday, which combines Walmart+ and Sam’s Club Plus.
The company says shoppers save nearly $100 compared with buying the two separately.
The holiday season is coming, and consumer spending is weak as lower- and middle-income households are feeling the pinch.
Walmart, Target and Kroger have all cut prices on thousands of items this year to win over budget-conscious shoppers.
Walmart’s own results show the strain. In August, it reported its slowest quarterly comparable sales growth in six years. while average spend per visit also softened from a year ago.
Competition is part of the story too. Membership-only chains like Costco and discount grocers like Aldi have seen stronger traffic in the U.S. Shoppers want convenience and value.
Walmart is also leaning on its advertising platforms to support profits and protect margins.
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What the Market Is Telling Us About Walmart Stock
For Walmart stock, the bundle is a way to lock in loyal shoppers as members spend about 4x more than non-members, according to management.
That makes memberships one of the most valuable parts of the business.
The numbers on the last earnings call were solid. Sales grew 5% in constant currency and membership fee revenue rose 17%, an all-time high.
Walmart+ in the U.S. posted double-digit growth, and Sam’s Club U.S. membership income grew nearly 6%.
Management also explained the weak comp. U.S. comps rose 2.6%. A change in drug pricing rules cut that figure by 125 basis points. Excluding health and wellness, core categories have stayed in a steady 3% to 4% range.
Walmart stock also benefits from growth beyond stores. E-commerce grew 23% globally, and advertising grew 38%.
Marketplace sales in the U.S. grew 52%, while management said almost half of profit growth came from membership, advertising, and marketplace.
Management raised guidance but called it a modest raise as it cited more than $2 billion in extra fuel costs and a softer consumer.
It also said Q3 operating income growth would slow to 2% to 4% as it reinvests tariff refunds into lower prices.
So Walmart stock is balancing price cuts against membership growth. Investors in Walmart stock will watch whether the bundle lifts sign-ups this holiday season.
Holiday traffic could also shape how Walmart stock trades.
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So what is Walmart stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
