Retail juggernaut Walmart (WMT) is badly overpriced, at least according to contemporary analyses. Certainly, no one questions the viability and relevance of the big-box retailer. However, with a market capitalization of over $1 trillion, it’s reasonable for investors to wonder whether or not the party in WMT stock is about to collapse — and that’s a bill nobody wants to pay.
Again, it’s not that Walmart is a bad business; quite the opposite. However, a giant brick-and-mortar — which is a yesteryear business model — isn’t supposed to compete with the latest innovators in artificial intelligence and other exciting technologies. Plus, WMT stock must deal with the practically omnipresent Amazon (AMZN) threat. So, it would appear that a negative rerating is in order.
