Morgan Stanley Touts e-commerce Growth to Bolster Walmart's (WMT) Profitability
In a research note to investors, Morgan Stanley notes that Walmart has evolved from a traditional brick-and-mortar retailer to an e-commerce powerhouse. The investment bank also views the company as a disruptor in the retail media and supply chain.
Morgan Stanley has taken note of Walmart's e-commerce losses narrowing significantly to the point of near breakeven. While online merchandise still generates losses, Morgan Stanley expects them to narrow significantly as the scale of operation lowers delivery costs.
Consequently, the investment bank expects Walmart to generate $6 billion in incremental adjusted operating income due to growth in its e-commerce business. It also expects margins to be in the 10% to 12% range.
Walmart Inc. (NYSE:WMT) operates retail stores and e-commerce platforms, focusing on providing a wide variety of products at affordable prices. It offers a range of goods, including apparel, homeware, jewelry, and hardliners.
While we acknowledge the potential of WMT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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