Walmart has become the first traditional retailer to hit a $1tn (£730bn) market valuation, propelling it into a small group dominated by tech firms. The milestone reflects the US retail giant's booming e-commerce business and its success in drawing in price-conscious shoppers. Wall Street has also responded enthusiastically to its investments in artificial intelligence (AI). Walmart joins an elite club of mostly tech firms, including Nvidia and Alphabet, with valuations over $1tn. The company's share price, which has soared in recent months, rose by more than 3% on Tuesday. Walmart is the biggest brick-and-mortar retailer in the US and is known for its low prices. It has benefited from a trend of higher earners trading down to lower-priced items, as the jobs market cools and inflation persists. Its speedy home delivery offering has also enticed shoppers from households across income brackets. Walmart's online business has helped it emerge as a competitor to Amazon. E-commerce sales in the US jumped 28% in the three months to 31 October, propelled by online orders and advertising. Still, Amazon's market value currently stands at $2.6tn - more than double Walmart's. Wall Street investors have embraced Walmart's adoption of AI, helping push the company's valuation to new highs. The firm reached the $1tn milestone during chief executive John Furner's first week at the helm of the company. Furner has been a vocal backer of its AI investments.
BBQ - What factors cause the change in share price for businesses?
