Walmart Slides Below $1 Trillion Market Cap Amid Slow Growth Concerns
Walmart's market capitalization has dipped below $1 trillion and it may not reclaim that level anytime soon. The company's slow growth rate, particularly in online advertising revenue, is a major concern for investors.
The retail giant trades at a premium to Amazon and Target but delivers growth rates similar to the latter. However, its low-margin business model and decelerating online advertising revenue make it harder for Walmart to justify a $1 trillion market capitalization.
Walmart's fiscal 2027 second-quarter earnings per share dipped by 9.1% year over year, while its net profit margin remained around 3%. The company's guidance for the third quarter implies up to 3.75% year-over-year revenue growth, which was before the Fed announced an interest rate hike.