The stock has nearly tripled in three years.
Low EBITDA growth post 2023, there's been some one-off gains from investments for the GAAP earnings. Growth slowing to 3.35% in most recent quarter, nothing exceptional.
Revenue growth ok at around 5-6%, also should factor higher inflation in recent years, nothing insane.
Apparently, it's a tech company because it has a website now. Is the year 1999?? It has generated solid margin from selling ads on its website but traffic seems flat though so guessing growth will slow.
If you compare it to other defensive stocks like Coke which have similar growth, better brand, international growth potential and a 25x PE – unsure why Walmart is so rich. I mean it's Walmart. I'd much rather own Costco then Walmart.
Tell me why I shouldn't put my life savings into Walmart puts? Bought some puts already but thinking of going bigger:
Someone fucking explain why Walmart ($WMT) is at 47x earnings?
byu/ini0n inwallstreetbets
Posted by ini0n
36 Comments
It’s a “defensive” stock lol.
Food prices going brr
Nobody drink coke. Everyone under 80k Walmarts
It’s a sign of the times
They are the dominant food retailer and are expanding their online delivery business. That’s all I can think of.
“Mid class” now the walmart class. Prices going up and people returning to bargains while also trying to boycott Amazon and target.
Idk dude there’s a electric car company saying they’re not going to sell cars anymore trading at like 600 p/e so why would this be particularly different?
Because it’s growing as one of the few competitors to Amazon as an online ‘everything’ marketplace.
They are getting more because they are executing well. They have grown away from brick and mortar over to virtual storefronts. They saw a significant increase in ad revenue, and sales. I own COSTCO and I would much rather (and do) own Walmart.
My guess is it has to do with all the real estate it owns.
Because the market is irrational
They added the Upper Middle Class folks to their rotation. Tough times.
Its a good company, Id buy some at 90 to 100. Their CEO is smart with the way he has adapted over the years.
You haven’t heard? They’re launching walmart cloud, everything will be half the price of traditional cloud vendors.
NVDA at 23
The poors are buying more chinese shit than ever before… via Walmart
No matter what happens, people gonna eat and drink coke. and wipe there ass. Walmart provides full service in that regard.
Walmart is like a physical etf that holds a bunch of other companies
I opened puts earlier this week, so overbought.
A couple years ago I switched from Amazon to Walmart I should have figured many other people will do the same and bought the stock, oh well another obvious sign I missed in front of my face
Because people keep buying puts
Cuz when you can’t afford wendys you walmart
Pokemon cards
People are treating it like a bond.
the poors are taking over….
Remember the Walmart Metaverse Virtual Reality experience? That’s why! /s
CAPEX
Can’t say I have all the information, but I know they’re investing heavily in automation. I actually expect them to end up with better warehouses than Amazon. Amazon has always approached innovation within the context of existing warehouses. The biggest thing they’ve done was kiva, which required all new warehouses. Walmart hasn’t invested as significantly in building out warehouses, so the cost for them to make drastic shifts isn’t as high. They can build new. So essentially they’re designing a brand new warehouse model around automation instead of trying to add it to hundreds of fulfillment centers.
Ai
You and I both know the market divorced from reality years ago. Don’t kid.
Based on their latest fiscal year 2026 earnings report released in February 2026, Walmart’s annual revenue was $713.16 billion.
You would compare better with Costco or loblaws not Coke please
Because the market thinks people will buy shit from Walmart when tightening their belt but not Amazon even though they will deliver your orders straight to your house.
Walmart probably is thinking about building their equivalent of AWS and implementing AI to cut costs so their forward PE in 2050 is going to be 10 while Amazon’s growth will slow down to 4% so we are seeing a multiple compression.
cuz it has stable and predictable earning that does not depend on AI
Four reasons:
1. Too much global liquidity and 401ks chasing too few US companies
2. It’s in the DJIA index, a major recipient of foreign carry trade
3. Online business outcompeting AMZN
D. AI enabled promises, which may or may not materialize, but they sure smell sweet, like unicorn p👀p. 😂
HALO. Tech stocks dumped and investors rotated into consumer staples. The market values stability above all else right now which is why boring safe stocks are now trading at high P/E