Walmart, the American retail giant It will be available from the New York Stock Exchange this Tuesday. Exchange moves to Nasdaq The relocation of the company to the stock exchange set a record for the largest relocation of a listing location in the history of the US stock market and attracted widespread attention from global markets.
Walmart has passed its period of rapid growth and its performance is relatively stable, making it a favorite among "old money." Nasdaq, on the other hand, is characterized by attracting rapidly growing innovative companies. The listing of such a massive retail behemoth on Nasdaq feels somewhat incongruous. Some analysts suggest that Walmart's move to Nasdaq, with a market capitalization of $853.1 billion, may represent a trend of traditional industries further embracing a high-tech narrative.
Walmart CFO John David Rainey previously stated that Walmart is integrating automation and artificial intelligence. By creating a smarter, faster, and more connected experience for customers, it sets a new standard for omnichannel retail.
In short, Walmart has begun to market itself as a new company that combines traditional retail with AI automation. This choice is actually quite clever. On the one hand, it enhances Walmart's technological image, potentially boosting the company's valuation; on the other hand, it's essentially a targeted marketing strategy, aligning its business with that of another, more technologically advanced retail giant , Amazon. Alignment.
Jefferies analyst Corey Tarlowe also pointed out that the move to Nasdaq listing gives Walmart the opportunity to be included in the Nasdaq 100 index, which is dominated by technology stocks, and this will attract more passive fund investments.
New Story
Walmart had been trading its shares on the New York Stock Exchange for over 50 years. The NYSE is one of the oldest financial centers in the United States, but it is facing increasing challenges from newer exchanges.
The Nasdaq Stock Exchange, known for its technology sector, was affected by Apple. Nvidia , Microsoft With the rise of tech giants and their growing strength, the soon-to-be-established Texas Stock Exchange may also be poised to grab a share of the pie.
Different exchanges have different characteristics of their listed companies. For example, the NYSE gathers a large number of traditional American industries and established companies, while Nasdaq has a large number of high-valuation, high-growth technology companies. The Texas Stock Exchange, which is in the works, may be more characteristic of Wall Street.
Walmart's relocation reflects the company's renewed pursuit of a new corporate image in the new era. This comes despite the company's past focus on artificial intelligence and robotics. Digital payments have seen significant investment and some progress, but due to the presence of retail giants, these advancements have not been fully absorbed by investors.
Once Walmart moved to Nasdaq, the market's enthusiasm surged instantly, and they began to delve into what Walmart had done in terms of technology. This kind of publicity was more effective than running ads all day during the American Super Bowl.
Tomas Jandikhiatus, a professor of corporate finance at the University of Arkansas, added that Walmart's move was also intended to signal to traders and investors that Walmart should be seen as a direct competitor to Amazon , rather than just an ordinary discount retailer.
Make a decision?
Walmart does not compete with Costco or Target. Instead of choosing Amazon as a competitor, it reflects a paradigm shift in the retail industry: business models are increasingly constrained by technology rather than the number of stores.
Recent changes in consumption patterns show that more and more consumers are accustomed to online shopping, making the situation difficult for traditional brick-and-mortar retailers. On the other hand, consumers are paying more attention to personalized recommendations, cost-effectiveness, and celebrity endorsements, which poses a challenge to e-commerce platforms, such as the TikTok store, which originated on a social media platform.
Walmart's emphasis on its investment and achievements in technologies such as artificial intelligence is largely aimed at proving that it is not lagging behind in its retail model. This is a strategy to attract consumers and an attempt to gain the trust of the capital market.
During Walmart's third-quarter earnings call, Walmart stated that more than 60% of its goods are now shipped through automated distribution centers, more than half of its online orders are completed in automated facilities, and more than 40% of its new software code is generated or written with AI assistance.
These data clearly demonstrate Walmart's future strategy: to profit through technological upgrades rather than relying on store expansion or cost advantages.
At the same time, this gives Walmart more confidence to secure more capital "votes" from investors to support its next capital expenditure plans. Inclusion in the Nasdaq index has an upgrade effect; besides attracting more passive investment, Walmart will be listed alongside tech giants, thereby strengthening its "technology retail" brand image.
Finally, Walmart's choice of Nasdaq may have had another additional consideration. Listing on Nasdaq is typically cheaper than on the New York Stock Exchange. While this might be negligible for Walmart, a company known for its cost-saving approach, perhaps didn't want to overlook this detail.
(Article source: CLS)
