Walmart posted $177.4 billion in revenue. The number that matters is buried three lines down. Revenue grew +4.8%, solid but unremarkable for a retailer this size. The real story: advertising revenue grew +46%, with Walmart Connect up +31%. That business carries roughly 70% gross margin and now contributes a third of operating profit. Walmart isn't a retailer with an ad business anymore. It's an ad business with 4,600 warehouses. This is precisely the playbook that transformed $AMZN. Sell physical goods at thin margins, monetize the traffic data at fat ones. $TGT is trying the same thing at smaller scale. The retailer with the best first-party purchase data wins, and nobody has more than Walmart. The chart is at a decision point: $WMT at $115, pressing the $115–118 purple resistance zone. The descending wedge from the $134.77 ATH is converging with the ascending trendline from 2024. The vértice is here, resolution is imminent. $118 breaks the wedge bullish and opens $121. Lose $109 and the trendline breaks, $104 is the next real support. Is Walmart's ad business enough to re-rate the multiple, or does weak retail traffic cap it here? 👇
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