WMT Stock Just Got Crushed 9% — Top Analyst Says Walmart's E-Commerce, Advertising Growth Still ‘Support

Despite Walmart Inc.‘s (NASDAQ:WMT) recent stock drop following a softer-than-expected third-quarter outlook, UBS analyst Michael Lasser remains highly optimistic, pointing to the retailer’s rapid expansion in lucrative e-commerce and advertising sectors as key drivers that “support the bull case.”

The Three-Pillar Bull Case

Speaking on CNBC’s Squawk Box, Lasser outlined the three primary factors driving Walmart’s premium valuation over the last 18 months. First, he highlighted the retailer’s “stable core business,” noting that Walmart commands “one out of every five grocery dollars in the United States.”

Second, Lasser pointed to “automation and technology that’s going to make the business much more profitable.” Finally, he emphasized the importance of “rolling in new revenue streams that are very high margin.”

Elaborating on this final point—which he believes will sustain the company’s long-term trajectory despite near-term consumer pressures—Lasser noted that Walmart’s “eCommerce grew 24% in the U.S.” and its “advertising business grew 38% in the U.S.” He concluded, “These are very comfortable growth levels that continue to support the bull case on this stock”.