Who's Next To Join Tesla, Broadcom In $1 Trillion Club? Over 50% Say The World's Biggest Retailer

The exclusive $1 trillion market cap club has seen some notable additions in recent years, with Tesla and Broadcom joining the ranks of tech giants like Apple and Amazon. As investors eagerly await the next member, a recent survey reveals that over 50% of analysts believe the world's biggest retailer, Walmart, is next in line. Let's delve into the reasons behind this prediction and explore the potential of other contenders.

Walmart's e-commerce strategy and integration with physical stores have been key drivers of its growth potential. The company's "click-and-collect" service, which allows customers to order online and pick up items at their local store, has been particularly successful. This strategy leverages Walmart's extensive retail footprint, offering customers convenience and speed, while reducing shipping costs for the company. Additionally, Walmart's acquisition of Jet.com in 2016 has helped it expand its online presence and attract younger, urban shoppers. As of 2024, Walmart's e-commerce sales have grown significantly, reaching $74.6 billion, a 35% increase from the previous year. This growth, coupled with Walmart's strong brand and extensive retail network, positions it well to potentially join the $1 trillion club.



Walmart's expansion into new markets and product categories has also significantly contributed to its market cap growth. In 2024, Walmart's market cap reached $757 billion, making it the closest to joining the $1 trillion club among the four companies mentioned. Its e-commerce initiatives, such as the acquisition of Jet.com and the expansion of its online grocery services, have driven this growth. Additionally, Walmart's entry into the healthcare sector through its partnership with Humana and the acquisition of the majority stake in the Indian e-commerce platform Flipkart have further boosted its market cap.



Walmart's revenue growth rate over the past five years has been relatively stable, averaging around 3.5% annually. This is lower than the growth rates of other companies in the $1 trillion club, such as Amazon (18.5%) and Apple (12.5%), but still demonstrates consistent performance. Walmart's steady growth, coupled with its massive market capitalization, makes it a strong candidate to join the $1 trillion club in the near future.

While Walmart is the favorite among analysts, other contenders include Eli Lilly, JPMorgan Chase, and Visa. Eli Lilly's market cap is currently $749 billion, requiring a 31% increase to reach the trillion-dollar mark. The drugmaker's strong pipeline and potential growth in the weight-loss category make it a compelling candidate. JPMorgan Chase, with a market cap of $675 billion, would need a 48% increase to join the club. The bank's strong financial performance and potential regulatory tailwinds could drive its market cap higher. Visa, with a market cap of $617 billion, would need a 63% increase. The payment processor's fast-growing nature and macroeconomic tailwinds make it a potential candidate.



In conclusion, Walmart's strong e-commerce strategy, expansion into new markets, and consistent revenue growth make it the favorite to join Tesla and Broadcom in the $1 trillion club. However, other contenders like Eli Lilly, JPMorgan Chase, and Visa also have the potential to reach this milestone. As investors await the next member of the exclusive club, they should closely monitor the performance of these companies and the broader market trends that could impact their growth.