The Rundown: Deep Dive—Is Walmart a Tech Company Now?

Host: Zaid Admani
Date: February 21, 2026
Podcast: The Rundown by Public.com
Episode Theme: A comprehensive look at Walmart’s evolution from a traditional retailer to a digital powerhouse and tech company, examining what’s driven its transformation, financial results, competitive advantages, and potential risks.

Episode Overview

In this weekend "Deep Dive" episode, Zaid Admani analyzes Walmart’s remarkable journey from being seen as a “dinosaur” of brick-and-mortar retail to achieving a $1 trillion market cap and emerging as a serious tech and e-commerce competitor—especially to Amazon. The discussion traces strategic decisions, financial performance, and the broader implications for investors, while also exploring the risks and limits posed by its rapid transformation and current high valuation.

Key Discussion Points & Insights

1. Walmart’s Evolution: From Retail “Dinosaur” to Digital Powerhouse

[00:18–02:02]

• In 2014, Walmart's business was struggling as Amazon disrupted retail and online shopping soared.
• Walmart had minimal e-commerce presence and declining same-store sales.
• The company hired Doug McMillon—an internal lifer who started in the warehouse—as CEO in February 2014.

“Amazon was absolutely torching the retail industry… Walmart, which had spent decades dominating giant physical stores, suddenly looked like a dinosaur.” (Zaid Admani, 00:22)

2. Key Strategic Moves Under Doug McMillon

[02:03–04:05]

• Acquisition of Jet.com in 2016 for $3 billion, bringing in e-commerce expertise via Marc Lore.
• Major investments in tech-driven supply chain automation.
• Launch of Walmart+, rivaling Amazon Prime (now over 25M subscribers).
• Leveraging Walmart’s physical footprint—5,000+ stores, with 90% of Americans living within 10 miles—for rapid online order fulfillment.

“Doug McMillon spent billions of dollars to transform those 5,000-plus stores… into hyper-efficient distribution hubs to fulfill online orders.” (Zaid Admani, 03:26)

• By 2025, e-commerce sales surged from $10B (2014) to over $150B.

3. Financial Results & Operating Advantages

[04:06–07:15]

• 2025 revenue: up 4.7% to $713B.
• E-commerce growth: 23% globally, 27% in the U.S., eighth straight quarter of 20%+ growth.
• 35% of store-fulfilled orders delivered in under three hours; U.S. fast delivery users up 60% YoY.
• Appeal to wealthier, convenience-driven shoppers.

4. Walmart’s Expanding Margins: The 3 Pillars

[07:16–09:50]

a. Advertising Business

• Ad revenue up 46% to $6.4B (2025).
• Sponsored placements in search results deliver high (70%+) margins.

“Walmart is sort of becoming an ad company as more and more people shop on Walmart’s website and app…” (Zaid Admani, 08:15)

• Acquisition of Vizio (smart TV maker) allows expansion of in-home advertising and richer data collection.

b. Automation & Inventory Efficiency

• Use of AI for inventory management; inventory only increased 2.6% (half sales growth rate).
• Automation in warehouses and supply chains reduces labor and storage costs.

c. Membership Revenue

• Walmart+ and Sam’s Club driving growth—$4.3B in memberships in 2025, up 15%.
• Highly profitable, recurring revenue stream.

5. Tech Transformation & Investor Sentiment

[09:51–11:10]

• Walmart’s new partnership with OpenAI allows ChatGPT users to buy directly from Walmart, signaling further tech innovation.
• Switch from NYSE to Nasdaq and entry into the tech-heavy NASDAQ 100 reflects Walmart’s repositioning as a tech player.

“Walmart wants investors to treat it like a tech company.” (Zaid Admani, 10:31)

Challenges & Risks

1. Trade Tariffs and Economic Uncertainty

[11:11–12:05]

• One-third of Walmart products are sourced internationally.
• Ongoing volatility around tariffs from China and Mexico; potential for increased costs depending on political shifts.

“That’s still a very fluid situation... All that’s going to add uncertainty to Walmart’s business.” (Zaid Admani, 11:40)

2. Leadership Transition

[12:06–12:40]

• Doug McMillon stepped down Feb 1, 2026, replaced by John Furner (Walmart US Division head).
• Concerns over maintaining momentum amid management changes.

“He has big shoes to fill to make sure that Walmart carries this momentum into the next era…” (Zaid Admani, 12:24)

3. Valuation Risk

[12:41–13:44]

• Walmart trading at 42x forward earnings—higher than tech giants like Nvidia and Google (at 27x).
• Only growing revenue ~5%/year; little room for error.

“Even I’m starting to think the stock has gotten expensive trading at over 40 times forward earnings… one bad quarter or a misstep by the new CEO could reprice the stock.” (Zaid Admani, 13:30)

Defensive Qualities and Dual Identity

[13:45–14:40]

• 60% of Walmart’s sales come from groceries—a stable, recession-resistant segment.
• Seen as both a tech-forward growth play and a defensive, economic-downturn stock.

“Like, it’s somehow both seen as a tech company, but also as a defensive stock… The market seems to be putting a higher value on Walmart’s core business as a retailer, because that’s not going anywhere.” (Zaid Admani, 14:12)

Memorable Quotes & Moments

• “If someone from Walmart is listening, my DMs are open.” (joking aside on product delivery, 03:45)
• “Walmart is now embracing AI commerce.” (10:20)
• “I do want to point out though that Walmart is in such an interesting spot right now.” (13:45)

Timestamps for Notable Segments

• 00:18 – Walmart pre-transformation and the Doug McMillon move
• 02:03 – Jet.com acquisition and early e-commerce investments
• 04:06 – Recent financial results and e-commerce performance
• 07:16 – Deep dive on margin expansion levers (ads, automation, memberships)
• 09:51 – Tech company pivot, AI integrations, and Nasdaq move
• 11:11 – Risks: tariffs, CEO transition, valuation
• 13:45 – Dual identity: tech play and defensive stock

Conclusion / Host’s Takeaway

Zaid emphasizes both his admiration for Walmart’s transformation and his concerns over the lofty valuation for a retailer. He sees Walmart uniquely straddling the worlds of high-tech innovation and recession-proof consumer staples, but warns that the stock may be priced for perfection.

“Let me know in the comments on Spotify and YouTube if you’re buying into Walmart’s tech transformation or if you think the stock is just completely overvalued.” (15:00)

For anyone interested in the intersection of retail, tech, and investing, this episode presents a brisk yet in-depth look at how a legacy retailer can reinvent itself—and the new questions that come with success.