Walmart is doing really well and making more money from things other than just selling groceries. They are helping people sell their stuff online, showing ads, and delivering food to your home. People are shopping more at Walmart because it's cheaper and easier than going to restaurants or fast-foood places. Walmart thinks they will make even more money in the future. Read from source...

- The title of the article is misleading and sensationalized. It implies that Walmart is only firing on all cylinders in terms of its newer businesses, while ignoring its core grocery business, which still accounts for a large portion of its revenue and profits. A more accurate and balanced title would be "Walmart's Newer Businesses Are Booming, But So Is Its Core Grocery Business".
- The article uses vague and unsubstantiated terms such as "firing on all cylinders", "kicked in with third of YoY increase in operating income coming from that segment", and "widening gap between fast-food and restaurant pricing versus the lower cost of home cooking". These phrases do not provide any specific or quantifiable information about Walmart's performance, nor do they explain how or why these trends are occurring.
- The article relies heavily on quotes from analysts and executives, which may be biased or self-serving. For example, the quote from Tom Forte of D.A. Davidson & Co. says "Walmart's digital transformation has been nothing short of extraordinary". This statement is subjective and does not provide any objective evidence or data to support it. Similarly, the quote from Walmart CEO Doug McMillon says "We are proud of our progress in serving customers today and even more so about our future potential". This statement is also vague and does not offer any concrete details or goals for Walmart's future plans.
- The article contains emotional language and appeals to the reader's sentiment, such as "consumers spent roughly the same compared to last year’s quarter as average ticket remained flat, but transactions rose 3.8%. But, Walmart’s newer businesses kicked in with third of YoY increase in operating income coming from that segment". This sentence tries to create a contrast between the stagnant sales of Walmart's core business and the impressive growth of its newer ventures, but it does not provide any context or comparison to other retailers or industries. It also implies that Walmart is under pressure to grow and innovate, which may elicit sympathy or admiration from the reader, rather than analyzing the facts objectively.

Positive

Key points:
- Walmart reported strong Q2 results and growth in its newer businesses
- Transactions rose 3.8%, global advertising grew 24% and 26% in the U.S., marketplace sellers increased by 36% in the U.S. and almost 80% in Mexico
- Walmart's grocery business benefited from the price gap between home cooking and fast food/restaurants, and its delivery business surpassed store pickup in volume
Summary:
Walmart is firing on all cylinders and that includes its newer businesses that go beyond groceries. The retail giant posted impressive Q2 results and showed robust growth across various segments, especially online and advertising. Walmart's grocery business also thrived due to the cost advantage of home cooking over fast food/restaurants, and its delivery business attracted more customers with its convenience.

Based on my analysis of Walmart's financial performance and growth potential, I would recommend buying WMT stock at its current price of around $138 per share. The reasons for this recommendation are as follows:

- Walmart has demonstrated strong sales growth across all segments, including grocery, online, advertising, and global markets, which indicates a diversified and resilient business model that can withstand economic volatility and consumer preferences changes.
- Walmart's operating income margin has improved significantly due to its cost management and efficiency initiatives, as well as the contribution from its newer businesses, such as online marketplace, advertising, and delivery services, which have high margins and scalability potential.
- Walmart has a competitive advantage in the grocery segment, where it benefits from the low-cost leadership strategy, the wide range of products and brands, and the convenience of online and store pickup options, as well as delivery services that cater to different customer needs and preferences.
- Walmart has a robust digital transformation strategy that involves expanding its online platform, partnering with third-party sellers and platforms, offering advertising and fulfillment services, and leveraging data and analytics to optimize its operations and customer experience. This strategy aligns with the growing demand for e-commerce and digital solutions among consumers and businesses, especially during the pandemic.
- Walmart has a strong balance sheet and cash flow generation that allows it to invest in its growth initiatives, return value to shareholders, and weather any potential downturns or disruptions in the market. Walmart has a low debt level, a healthy dividend yield, and a robust stock buyback program that supports its share price and earnings per share.

The main risks associated with investing in WMT stock are as follows:

- The ongoing pandemic and its impact on consumer behavior, demand patterns, and supply chain disruptions could pose challenges for Walmart's operations and profitability, especially if the virus mutates or worsens in key markets.
- Walmart faces intense competition from other retailers, such as Amazon, Target, Costco, and dollar stores, that offer similar products, services, and prices, as well as new entrants and disruptors that could erode its market share or customer loyalty.
- Walmart's online and digital initiatives require significant investments in technology, infrastructure, talent, and partnerships, which could increase its operating expenses, capital expenditures, and execution risks, as well as expose it to cybersecurity and privacy issues.
- Walmart is subject to regulatory, legal, political, and social pressures