While most eyes were fixed on big tech and its continuous advancing and pushing of artificial intelligence (AI), the retail giant Walmart (NASDAQ: WMT) was slowly evolving its business and executing a stock market rise that took the retail giant to its record-breaking valuation of $1.02 trillion.
Specifically, the company has slowly been developing its e-commerce and advertising operations through 2025, taking on a more technology company appearance with arguably the crowning jewel coming late last year when WMT moved its listing from the NYSE to NASDAQ.
Additionally, despite not usually being accounted for when one thinks of AI companies, the retail giant has been enthusiastic about adopting cutting-edge advancements and participating in the ongoing boom.
The end result of such a transformation came in November 2025 when a blockbuster earnings report helped, and a rather long period of stock market stagnation, propelling Walmart stock into its latest rally and toward its press time price of $127.80.
Within the last 12 months, WMT shares are 24.73% in the green, though it is worth pointing out that the 6-month rally is even greater at 28.89%. Year-to-date (YTD), Walmart stock is up 13.52%
Is Walmart stock a buy in 2026?
The question that naturally arose after Walmart made history by becoming the first brick-and-mortar retailer to hit a $1 trillion market capitalization is whether the equity is still a buy, or if WMT shares’ era of growth is over for the time being.
The immediate answer to the question appears to be that the equity very much remains a buy. Walmart’s value proposition is arguably unbeatable, and the firm is all but guaranteed to do well no matter the circumstances.
If the AI boom restarts, WMT’s adoption of new technology and e-commerce means it is likely to continue advancing in the stock market.
If the current downturn that led to a notable S&P 500 and Dow Jones Industrial Average (DJIA) retreat and a veritable bloodbath in the cryptocurrency and commodity markets persists, Walmart’s key business of a low-cost supermarket chain can ensure a steady cash flow.
Wall Street forecasts Walmart share price
Under the circumstances, it is easy to see why Wall Street overwhelmingly rates WMT stock as a ‘Strong Buy.’ The average price target of $127.92 stands between the press time price of $127.80 and the latest closing price of $128 demonstrates that experts and institutions have yet to account for the latest upsurge on TipRanks.
Equally noteworthy is that both price forecast revisions made in February – those issued by Piper Sandler and Evercore ISI – essentially expect WMT to trade sideways in the coming 12 months, as the analyst predicted a climb to $130 – just $2 above the latest close.
Why Walmart stock might not be a buy after hitting $1 trillion valuation
The critical moment that could definitively answer the question of whether Walmart stock is a buy after hitting a $1 trillion market capitalization could come on February 19 with the next earnings report.
Should investors be pleased with the results, WMT stock is likely to lock in its elevated valuation and largely negate the danger of a bearish correction.
Still, it is worth pointing out that by developing the more digital and technological side of its business, Walmart might have become more susceptible to the same pressures affecting big tech.
Recent earnings reports are already demonstrating that, while the industry remains strong, both growth and margins have been contracting, thus leading to investor unease.
The most dramatic examples of this trend came in late January and early February from Advanced Micro Devices (NASDAQ: AMD) and Microsoft (MSFT), which, despite seemingly strong quarterly results, suffered rapid stock market drops.
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