Walmart Stock Falls Despite Flipkart's Quick Commerce Growth in India

Walmart's (WMT) stock has failed to get a boost from its Indian subsidiary Flipkart's growth in quick commerce sales. Despite reports that Flipkart's Flipkart Minutes arm is delivering over 1.1 million orders per day, Walmart's stock price fell by 1% today.

This decline comes on the back of poor Q2 earnings, which have battered the company's stock price over the last three months, causing it to dip by 11%. The quick commerce sector in India has been growing rapidly, with Flipkart fueling its growth through an aggressive expansion of its delivery infrastructure. It now operates around 1,020-1,050 micro-fulfillment centers, aiming to reach 1,500 by the end of 2026.

Flipkart's growth in quick commerce sales has been impressive, with TechCrunch reporting that it is closing in on Swiggy's Instamart, which delivers around 1.4 million orders per day. However, India's government has ordered companies to stop promoting their grocery deliveries as a '10-minute' service due to concerns over rash driving and low pay.

Despite these challenges, Flipkart remains a key player in the quick commerce sector, with its IPO set for 2027 and analysts expecting it to target an around $40 billion valuation. Walmart's stock price has a Strong Buy consensus based on 29 Buy and 3 Hold ratings, with a highest price target of $155.