- Walmart stock climbed after announcing a new integration with OpenAI‘s ChatGPT app.
- Shares reached a record high, adding around $50 billion to Walmart’s market capitalization.
- Trading activity doubled, with sentiment toward the stock turning extremely positive.
- Walmart’s stock is up 13.3% year-to-date and 4% for the month following the rally.
- BTIG initiated coverage on Walmart with a ‘Buy’ rating and a $120 price target.
In early premarket trading on Wednesday, Walmart shares rose 0.3% following the company’s newly announced partnership with OpenAI. Users can now order groceries and household products from Walmart directly through the ChatGPT app. The stock’s move comes after reaching a record high in the previous session.
On Tuesday, Walmart shares jumped 5% to a high of $107.21, increasing the retailer’s market capitalization by about $50 billion. Trading volume for the day was roughly twice the average level. The rally drew comparisons to recent gains in Etsy and Shopify stocks, which also saw boosts after partnerships with OpenAI.
Investor discussions pointed to technical signals that could suggest further upward movement for the stock. One market participant noted: “After forming two troughs near the same support level, the price broke above the neckline resistance, indicating renewed bullish control. This structure typically marks the end of a downtrend and the start of a new upward move.”
As of Tuesday’s close, Walmart stock had gained 4% in October and was up 13.3% since the start of the year.
Separately, investment research firm BTIG began coverage of Walmart with a ‘Buy’ rating and placed a price target of $120 per share, citing the company’s strong position to achieve ongoing market share and profit growth.
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