Walmart Diversifies Ad Tech Strategy, Backs Away from Trade Desk

Walmart is reportedly backing away from The Trade Desk, an ad tech rival to Amazon. The retail giant had been a major investor in The Trade Desk, but it is now reducing its stake in the company. Walmart is instead focusing on its own ad tech efforts and is likely looking to reduce its reliance on third-party ad tech providers.

Walmart Inc. (NYSE:WMT) has reportedly reduced its stake in The Trade Desk, an ad tech rival to Amazon. The retail giant had been a major investor in The Trade Desk, but it is now trimming its position, focusing instead on its own ad tech efforts and likely aiming to reduce its reliance on third-party ad tech providers [1].

Walmart's decision to divest from The Trade Desk comes amid a broader shift in its strategy. The company has been expanding its internal ad tech capabilities, with a focus on leveraging its vast customer data and e-commerce platform to deliver more targeted and effective advertising solutions. This move aligns with Walmart's broader objective to enhance its competitive position in the digital advertising market.

In recent quarters, Walmart has demonstrated a strong commitment to its digital transformation, investing heavily in technology and data analytics. The company's 10% employee discount program, which was recently expanded to include most grocery items, is another example of its efforts to enhance employee satisfaction and retention, potentially leading to improved operational efficiency [2].

Walmart's latest earnings report showed robust financial performance, with earnings per share (EPS) exceeding analyst expectations and a net revenue of $165.61 billion, marking a 2.5% year-over-year increase. The company also declared a dividend of $0.235 per share, scheduled for payment on September 2nd [1].

The shift in Walmart's ad tech strategy is part of a broader trend among retailers to reduce their dependency on external ad tech providers and enhance their own capabilities. This move can potentially lead to cost savings and improved advertising effectiveness, as Walmart can leverage its extensive customer data and insights to deliver more targeted and personalized advertising campaigns.

As Walmart continues to invest in its internal ad tech capabilities, it remains a strong performer in the retail sector, with a market capitalization of $806.42 billion and a P/E ratio of 43.18. The company's stock has been the subject of numerous analyst ratings, with a consensus rating of "Buy" and an average target price of $107.47 [1].

References:
[1] https://www.marketbeat.com/instant-alerts/filing-azimuth-capital-investment-management-llc-lowers-stake-in-walmart-inc-nysewmt-2025-08-14/
[2] https://qz.com/walmarts-expands-employee-discount-amid-tariff-pressures?utm_medium=sharefromsite&utm_source=quartz_link