The retail giant’s historic exchange transfer reflects years of AI investment and e-commerce growth, but does it deserve a tech company valuation?
After more than five decades on the New York Stock Exchange, Walmart officially began trading on the Nasdaq Global Select Market on December 9, 2025. The world’s largest retailer kept its WMT ticker symbol but moved both its common stock and several bond listings to the tech-heavy exchange. The company marked the occasion with a Times Square opening bell ceremony featuring Matt Brimmeier, a private fleet driver who has logged three million safe driving miles.
The transfer represents the largest exchange move on record, with Walmart’s market value exceeding $850 billion at the time of announcement. Nasdaq officials described the addition as a major win in their ongoing rivalry with the NYSE.
Trading like a tech heavyweight
Walmart now carries a valuation more typical of high-growth technology firms than traditional retailers. The stock trades at roughly 40 times forward earnings, a multiple that exceeds many established tech names. Its market capitalization recently pushed past $900 billion, placing it among America’s most valuable public companies.
The stock has climbed approximately 27% in 2025, significantly outpacing Amazon’s 4% gain over the same period. Only one out of 42 analysts rates the stock a sell, and Walmart holds the distinction of being the least shorted stock in the S&P 500.
E-commerce drives revenue growth
The company’s online expansion has been relentless. Global e-commerce sales grew approximately 28% year over year in the most recent quarter, marking the seventh consecutive quarter of 20% or greater digital growth. E-commerce now accounts for roughly 18% of Walmart’s revenue, up from about 15.4% in 2024.
More than 35% of digital orders are fulfilled within three hours. Walmart can now deliver within three hours to 95% of U.S. households, up from approximately 76% two years ago. The retailer has pushed aggressively into express delivery, offering one-hour service for last-minute orders. It also provides same-day delivery of sensitive pharmacy items, including insulin and GLP-1 weight loss drugs.
Automation transforms operations
Behind the delivery promises lies a massive automation buildout. Walmart executives told analysts that over 40% of the company’s new software code is now AI-generated or AI-assisted. More than 60% of U.S. freight moves through automated distribution centers, and over half of online orders are fulfilled in highly automated facilities.
The company uses agentic AI to clean up product catalogs and identify assortment gaps, making it easier for customers to find items. Walmart’s robotics partner Symbotic, which acquired the retailer’s in-house robotics division earlier this year, has seen volatile stock swings that underscore how central automation has become.
High-margin digital revenue streams
Perhaps the most tech-like aspect of Walmart’s business model is its shift toward high-margin digital revenue. Walmart Connect, the company’s advertising business, grew between 53% and 57% year over year in the latest quarter. On a recent earnings call, the CFO revealed that advertising and membership fees, including Walmart+, accounted for roughly one-third of consolidated adjusted operating income.
This advertising and subscription-driven margin mix explains why analysts now discuss Walmart alongside Amazon. The company has also integrated with ChatGPT’s Instant Checkout feature, allowing shoppers to discover and purchase through conversational AI experiences.
Leadership transition ahead
The Nasdaq listing arrives as Walmart prepares for a change at the top. In November, the board elected John Furner to succeed Doug McMillon as president and CEO, effective February 1, 2026. Furner started as an hourly associate in 1993 and has held leadership roles across merchandising, operations and sourcing. McMillon, who spent more than 40 years at Walmart, oversaw a roughly 300% stock price increase during his tenure as CEO.
The valuation debate continues
Supporters argue the premium is justified by consistent double-digit profit gains powered by e-commerce, automation and high-margin digital revenue. The company’s logistics speed now rivals many online-only competitors, and strong performance among wealthier households suggests demand has become more resilient.
Skeptics counter that Walmart remains fundamentally a retailer without a hyperscale cloud platform or pure software segment. Analyst forecasts put long-term earnings growth closer to high single digits rather than the 20% to 30% typically associated with true technology firms. Heavy capital investment in automation creates execution risk, and if growth normalizes while the stock still trades near 40 times earnings, even solid results could trigger valuation compression.
The Nasdaq move raises the bar for the entire retail sector. If a traditional chain can transform into a high-tech engine and command a near-tech valuation, competitors will need to accelerate their own AI and automation initiatives to keep pace.