Walmart (New York Stock Exchange: WMT) is an antique shop where cash and credit are king – right? Not necessarily, as times change, and investing in Walmart can actually benefit from the rise of the cryptocurrency and even the metaverse. Therefore, I am optimistic about Walmart’s stock.
We all know Walmart is a large, well-capitalized chain of retail stores. There’s a common notion that Walmart stock is what your parents and grandparents might invest in, but it’s mostly old business that probably won’t change much in the coming years.
However, you do not have to fall victim to assumptions and misconceptions. Just because Walmart is huge doesn’t mean it isn’t agile in adapting to new technologies. Believe it or not, the company has already dipped its toes into the future-facing world of non-fungible tokens (NFTs) — and one Walmart executive has just sparked an association with certainly modern digital assets.
Walmart may have its own Metaverse moment soon
Admittedly, the metaverse is largely the domain of young and open-minded artists, collectors, and investors. However, digital artifacts known as NFTs can capture the attention and imagination of almost anyone. Hopefully, Walmart will demonstrate its willingness to jump to the deep end and introduce metaverse-embedded products in the near future.
It might just be a waiting game at this point. Almost a year ago — before inflation got out of control, I might add — Walmart reportedly introduced several brands that indicated the intent to produce and sell virtual goods. Not only that, but Walmart also appears to have mentioned that it will offer virtual currency and NFT.
There weren’t many details in the report, but speculation started almost immediately. Trademark attorney Josh Gerbin, for example, concluded that “there is a lot of planning going on behind the scenes about how they will approach cryptocurrency, how they will deal with the metaverse and the virtual world that seems to be coming or that is already here.”
Maybe yes and maybe no. All these months later, there hasn’t been a major update about Walmart’s foray into the NFT brands or the products it might involve. That’s really a shame, as Walmart can take advantage of both new and new product types with a digital angle. Besides, if the metaverse flourishes into a more lucrative and enduring product field, Walmart CEOs certainly won’t want their company to be late to the profit gala.
Granted, Walmart asserts that it is “testing new ideas all the time” and “constantly exploring how emerging technologies can shape future shopping experiences.” This appears to indicate that the retailer could roll out NFT-enhanced products to shoppers at any moment. We hope Walmart leads the way rather than falling behind in introducing the public to the metaverse and vice versa.
A Walmart Executive Made a Bullish Statement About Cryptocurrency
While there has been no physical update on Walmart’s potential NFT venture, at least one of the executives has made a statement about the retailer’s involvement in the cryptocurrency. Indeed, what Suresh Kumar, chief technology officer of Walmart International, recently said about cryptocurrency, may surprise and delight some digital asset aficionados.
Speaking at a conference, Kumar declared without apology that cryptocurrency transactions will, from now on, be right “in the middle” of Walmart’s digital strategy. Now, that’s a bold statement coming from an executive at a company of this size.
It is getting better, though. “Cryptography will become an important part of how customers transact,” Kumar added, likely referring to Walmart. Furthermore, Kumar declared that Walmart wants to “make sure we make it friction-free for customers…so they can take the value out of it.”
This kind of statement from a Walmart executive would have been unimaginable 10 or even five years ago. However, here we are, and it looks like a major Walmart rep is almost ready to put Bitcoin (BTC-USDATMs in every Walmart store.
Well, maybe I’ll go too far. However, Kumar saw that “a lot of disruption will start to happen in terms of different payment methods and different payment options.” Is he suggesting that bitcoin and other cryptocurrencies may soon be accepted as payment in Walmart stores? If so, this should be a win for all long-term owners of both Bitcoin and Walmart stocks.
What is the price target for WMT stock?
Turning to Wall Street, WMT has a strong consensus rating of buy based on 23 buys and five holds assigned in the past three months. Walmart’s average price target is $152.22, implying a 9.19% chance of a rally.
Conclusion: Should You Consider Walmart Stock?
Walmart executives have not released any specific statements about the company that provides NFTs to customers. Also, Kumar did not specify a specific timeline for Walmart to begin accepting any particular cryptocurrency as payment for products. However, it is encouraging to see this old chain of stores test the waters with digital assets, or at least consider it. So, as an indirect bet on building a crypto-verse and possibly even the metaverse, feel free to consider a long position in Walmart’s stock.
The opinions and opinions expressed here are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.