$820B: Walmart's Short-Lived Departure from the Trillion-Dollar Club
Walmart (WMT) recently dropped out of the $1 trillion club after its market capitalization fell to around $820 billion, a decrease of roughly $180 billion from its peak in February.
The company's exit was unexpected, given its strong performance in the previous quarter. In the period ended July 31, Walmart posted revenue of $187.9 billion, up 5.9% year-over-year and beating estimates.
Global e-commerce sales grew 23%, marking the 10th consecutive quarter of 20% or better growth for Walmart United States. Operating income jumped 28.8% to $9.38 billion, with adjusted earnings per share coming in at $0.81, up 19.1%.
The company's high-margin businesses, such as global advertising revenue and membership fee revenue, are driving growth and carrying better economics than its traditional retail operations.