You’ve probably seen the headlines. Walmart isn't just that place where you grab a gallon of milk and a 50-pack of socks anymore. Lately, the stock price of WMT has been acting less like a boring retail staple and more like a high-flying Silicon Valley darling.
Honestly, it’s a bit wild.
As of mid-January 2026, the stock is hovering around $119.70. Just a year ago, it was struggling to stay above the $90 mark. That’s a massive jump for a company that’s been around since your grandparents were buying bell-bottoms. But if you look under the hood, the "boring" retail story is basically dead. It has been replaced by an e-commerce and advertising machine that is finally clicking into gear.
The Reality Behind the Stock Price of WMT
Wall Street is currently obsessed with one thing: margins. For decades, Walmart’s margins were razor-thin. They made pennies on the dollar because shipping heavy boxes of detergent to someone's front door is expensive.
Things changed.
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In its most recent fiscal Q3 2026 report (which ended October 31, 2025), Walmart’s global e-commerce sales shot up by 27%. That isn't just a lucky quarter. It is the 14th straight quarter of double-digit digital growth.
But here is the secret sauce. They aren't just selling more stuff online; they are selling ads. Their advertising arm, Walmart Connect, grew 33% in the U.S. last quarter. Every time you search for "protein powder" on their app and see a sponsored result, that is pure, high-margin profit dropping straight to the bottom line. This shift is a huge reason why the stock price of WMT hit a 52-week high of $121.24 recently.
Why Analysts Are Betting Big (And Some Are Scared)
If you ask the folks at Telsey Advisory Group or Wolfe Research, they’ll tell you there is still room to run. On January 14, 2026, several analysts raised their price targets to the $125 to $135 range. They see the inclusion in the Nasdaq-100 index earlier this month as a formal "welcome to the tech club" party.
However, some bears think the party is getting too expensive.
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The stock is currently trading at a price-to-earnings (P/E) ratio of about 41.9. For context, the S&P 500 usually sits around 22. Some investors, like those over at The Motley Fool, worry that the stock price of WMT has run up too fast. They argue that if consumer spending dips in 2026, a 41x multiple is a long way to fall.
The John Furner Era Begins
Leadership changes usually make investors nervous. In this case, it feels more like a passing of the torch. John Furner is set to officially take the reins as CEO on February 1, 2026, succeeding Doug McMillon.
Furner isn't an outsider. He’s a Walmart lifer. He’s the guy who helped integrate the physical stores with the digital app, turning 4,600 U.S. superstores into "delivery hubs." Because they already have the buildings, they can reach 93% of U.S. households with same-day delivery. That is a massive advantage over Amazon, which has to build every warehouse from scratch.
What Most People Get Wrong About the Dividend
Investors love Walmart for its "Dividend King" status. They just approved their 52nd consecutive year of increases. The annual dividend now sits at $0.94 per share.
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But don't buy it just for the yield.
At current prices, the yield is only around 0.79%. If you’re looking for huge quarterly checks, this isn't it. You buy WMT for the "total return"—the combination of that small dividend and the steady climb of the stock price itself.
How to Handle WMT Stock Right Now
If you're looking at the stock price of WMT and wondering if you missed the boat, you need to look at the automation. Walmart has already automated over 50% of its e-commerce fulfillment volume. This isn't just "cool tech." It cuts unit costs by roughly 20%.
When a company that does over $700 billion in annual revenue starts cutting costs by 20% on its fastest-growing segment, the math starts looking very attractive for long-term holders.
- Watch the February 19 earnings call: This will be the first big test under the new leadership structure and will set the tone for the rest of 2026.
- Monitor the P/E ratio: if it climbs toward 45 or 50 without a massive jump in earnings, the stock might be getting "frothy."
- Check the "Walmart+" numbers: Loyalty programs are the lifeblood of recurring revenue. If memberships keep growing at the double-digit rates seen in Q3, the stock's floor remains very high.
The era of Walmart as just a "grocery store" is over. It’s now a logistics and data company that happen to sell groceries. Whether that justifies a tech-level valuation is the big question for 2026, but for now, the momentum is clearly on the side of the bulls.
Next Steps for Investors:
Check your portfolio allocation to ensure you aren't over-leveraged in retail, then set a price alert for $115. This level has acted as a strong support point during the recent rally. If the price dips there, it may offer a more reasonable entry point for those wary of the current 41x P/E ratio. Finally, review the Q4 earnings report scheduled for February 19 to see if the AI integration with Google's Gemini is actually driving higher conversion rates on the mobile app.