Zaid

Now, on top of Walmart Plus, Walmart also owns Sam's Club, which some people say is better than Costco.

Now, personally, I'm a Costco guy.

I haven't been to Sam's Club in so long, but a lot of people I know prefer Sam's over Costco.

If you guys have any thoughts on that, let me know in the comments.

But yeah, memberships is a growing business for Walmart.

They generated $4.3 billion in membership revenue in 2025, which was up 15% from 2024.

And again, that's pure margin right there.

So when you put it all together, Walmart has a booming ads business, tighter inventory control, more automation in their warehouses, and a sticky membership revenue, you understand why operating income is growing faster than sales.

And the cherry on top for investors might be that Walmart is now embracing AI commerce.

Walmart recently announced a partnership with OpenAI that allows ChatGPT users to buy stuff from Walmart directly inside ChatGPT.

So the company continues to innovate.

In fact, Walmart wants investors to treat it like a tech company.

In December, Walmart actually switched their stock listing from the New York Stock Exchange to the NASDAQ, and they were added to the NASDAQ 100 Index, which is an index historically dominated by tech companies.

But look, Walmart does face some challenges moving forward.

So let's talk about that.

Up until this point, I've just been hyping up Walmart.

So let's talk about what could go wrong because there are some risks.

First up, you have tariffs and economic uncertainty.

Roughly a third of the products that Walmart sells in the US are made or grown internationally, mainly in China and Mexico.

And while Walmart has incredible leverage to shift the burden of tariffs onto its suppliers, it's still a very fluid situation.