Walmart's Stock Surges 3.37% – What's Fueling the Record Rally?

Summary
• Walmart (WMT) hits a 52-week high of $118.82, surging 3.37% intraday
• Strategic partnership with Google's Gemini AI and Nasdaq-100 inclusion confirmed
• Earnings beat, drone delivery expansion, and analyst upgrades drive optimism

Walmart’s stock is trading at record highs amid a confluence of strategic catalysts. The retailer’s collaboration with Google to integrate AI-driven commerce, its inclusion in the Nasdaq-100 index, and a robust earnings report have ignited investor enthusiasm. With a 3.37% intraday gain and a $944.5 billion market cap, Walmart is redefining its tech-driven retail narrative.

AI-Powered Retail Revolution Sparks Walmart's Record Rally
Walmart’s record-breaking rally stems from a strategic alliance with Google’s Gemini AI, enabling agent-led commerce across its platforms. This partnership, coupled with the retailer’s inclusion in the Nasdaq-100 index (replacing AstraZeneca), has triggered index rebalancing flows. Additionally, Walmart’s expansion of drone delivery to 150–270 locations and a Q3 earnings beat (EPS $0.62 vs. $0.60) have reinforced investor confidence. Analysts, including Bernstein and Telsey Advisory Group, have raised price targets to $125–$135, citing Walmart’s tech-driven transformation and consumer resilience in 2026.

Options Playbook: High-Leverage Calls for a Bullish Bet on Walmart
• MACD: -0.389 (Signal Line: -0.577, Histogram: 0.188) – Slight bullish divergence
• RSI: 48.86 (Neutral) – No overbought/oversold signals
• Bollinger Bands: Upper $117.21, Middle $113.61, Lower $110.01 – Price near upper band

Walmart’s technicals suggest a continuation of its upward momentum, with key support at $113.61 and resistance at $117.21. The stock’s 3.37% intraday gain and 25% year-to-date rally position it for further gains, especially with its Nasdaq-100 inclusion and AI-driven commerce rollout. Two high-leverage call options stand out for aggressive bulls:

• WMT20260116C114
- Type: Call
- Strike: $114
- Expiration: 2026-01-16
- IV: 34.62% (Moderate)
- LVR: 24.79% (High)
- Delta: 0.8256 (High)
- Theta: -0.8595 (High time decay)
- Gamma: 0.0537 (High sensitivity)
- Turnover: $230,484 (High liquidity)
- Payoff at 5% upside ($124.31): $10.31/share
- This contract offers explosive leverage with a 24.79% leverage ratio and high gamma, ideal for a short-term rally.

• WMT20260116C113
- Type: Call
- Strike: $113
- Expiration: 2026-01-16
- IV: 33.11% (Moderate)
- LVR: 21.23% (High)
- Delta: 0.8859 (High)
- Theta: -0.8747 (High time decay)
- Gamma: 0.0421 (High sensitivity)
- Turnover: $257,138 (High liquidity)
- Payoff at 5% upside ($124.31): $11.31/share
- This option balances leverage and liquidity, with a 21.23% leverage ratio and strong gamma for price sensitivity.

Aggressive bulls should consider WMT20260116C114 into a break above $117.21.

Backtest Walmart Stock Performance
The backtest of Walmart's (WMT) performance after an intraday surge of at least 3% from 2022 to the present shows no positive returns, indicating that such a surge is not a reliable predictor of future gains.

Walmart's AI-Driven Future: A Tech-Stock Play for 2026
Walmart’s rally is underpinned by a strategic pivot to AI-driven commerce and tech-focused index inclusion, positioning it as a hybrid retail-tech play. With a 3.37% intraday gain and a $944.5 billion market cap, the stock’s momentum appears sustainable, especially as it replaces AstraZenecain the Nasdaq-100. Investors should monitor the $117.21 upper Bollinger Band and $113.61 200-day moving average. Meanwhile, Amazon (AMZN), the sector leader, is up 0.23%—a reminder of the competitive tech-driven retail landscape. Take action: Buy WMT20260116C114 if $117.21 breaks, or short-term traders can scalp the $113–$114 range.