Could Investing $10,000 in Walmart Make You Richer?
Key Points
Approximately 150 million customers shop at Walmart each week at its stores and via its e-commerce site.
The company has several newer revenue growth engines.
The stock looks expensive on a forward price-to-earnings basis.
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Walmart (NASDAQ: WMT) is becoming a tech-enabled growth story, and that transformation is showing up in its stock price. Shares have climbed 36% over the last year.
It now trades at a forward price-to-earnings (P/E) ratio of 40.3, which shows the market has high expectations for the company. However, some investors are concerned about this rich valuation.
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Today, we'll look at what to consider before investing in Walmart.
Image source: Getty Images.
The digital transformation
Walmart is increasing its utilization of technology that not only reaches more customers and keeps them loyal through convenience, but also boosts revenue potential.
In June 2025, the retailer announced the debut of Sparky, its artificial intelligence (AI) shopping assistant. Sparky condenses product reviews, compares shopping options, and makes recommendations. It has been less than a year, but the company is already seeing results.
"Customer engagement is up, and the customers who use Sparky have an average order value that's about 35% higher than non-Sparky customers," management said last month on the fourth-quarter fiscal 2026 earnings call.
In another bid to compete more effectively against its rivals, the retailer also launched its Walmart+ membership program in 2020, offering members free shipping, early access deals, and other benefits. In fiscal Q4, it reported that Walmart+ fee revenue increased by a double-digit percentage.
Expanding advertising revenue
Walmart is also tapping into the world of data and advertising. Approximately 150 million customers shop at Walmart's stores and online each week, and it's wisely leveraging that traffic into advertising revenue.
Through Walmart Connect, advertisers reach shoppers through the retailer's physical stores, website, and app. Those advertisers also have access to data from Walmart that helps them understand the effectiveness of their campaigns and what is driving results.
Revenue from the global advertising business grew to $6.4 billion in fiscal 2026, a 46% climb from the previous year.
What to consider before investing
Walmart stock does look expensive by some metrics; its forward P/E of 40.3 is noticeably higher than it was over the last several quarters.
That indicates rising optimism relating to Walmart's digital transformation. As the company increases its AI-integration efforts, enhances its membership program and online shopping experience, and increases its advertising revenue, that optimism may prove warranted.
However, that also means there's less room for missteps. If what occurs in the coming quarters doesn't meet investors' expectations, the stock price will face significant pressure.
The big picture is that investing $10,000 in Walmart today could be a profitable decision. Still, to reap the potential rewards, shareholders will need to be patient and wait for the company's digital efforts to continue to mature.
Should you buy stock in Walmart right now?
Before you buy stock in Walmart, consider this:
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Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.
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