There’s a version of Walmart most people still picture. Fluorescent lights, crowded aisles, maybe a cart with a wobbly wheel. That version still exists. But the company Wall Street is paying 43 times forward earnings for? That’s a different beast entirely.

As of 2026, Walmart is a 63-year-old company, and the second-largest by revenue globally and the largest private employer in the world, with approximately 2.1 million employees.

Morgan Stanley met with Walmart (WMT) management during the quarter. What they heard reinforced a thesis the firm has been building for a while. Walmart’s e-commerce, membership, and advertising businesses are compounding in ways that brick-and-mortar retail never could.

“Valuation should remain…