If I pointed out that Walmart ( WMT -1.89% ) was a $650 billion retail business, no one would bat an eye -- we all know it's huge. But if I said that Walmart was a $100 billion e-commerce platform, that might turn some heads.
Well, turn those heads then, because it's true: Walmart is an enormous e-commerce business. When Walmart refers to e-commerce sales , it includes items that are bought online and picked up in stores. Therefore, these aren't necessarily pure e-commerce sales like many people are probably thinking.
That said, Walmart does over $100 billion in digital sales, and that's a big deal. Having this many customers on the website and on the app unlocks a new opportunity for the company: Digital advertising. Consumer brands pay big money to get in front of its huge audience.
The beauty of digital advertising is that it's a revenue source with little incremental cost for Walmart -- in other words, it's quite profitable. Keep in mind that advertising was already a $3.4 billion business for the company in its fiscal 2024, which ended in January.
And in its fiscal first quarter of 2025, advertising was still fast-growing with 24% growth. Since it's high-margin, digital advertising is playing an important part in Walmart's rebounding operating income -- a surge that started just over a year ago. WMT Revenue (TTM) data by YCharts All of this is important for Walmart shareholders.
But it may also be important for shareholders of Costco Wholesale ( COST 0.35% ) , since the .
