If you have shopped at Walmart (WMT) recently, whether through the app or store, you might have noticed that the experience feels a little different.
The Walmart app now lets you take a photo of your handwritten grocery list, and its AI assistant turns that picture into a cart ready to shop.
In its stores, there is a new tool you can tap in the app that makes a shelf price tag light up when you are looking for an item. And starting this month, you can even let an AI agent shop on your behalf.
These are all changes that Wall Street has noticed. In a BofA research report shared with me, titled “Price Objective Change – 3Q Preview: Well positioned for durable growth,” Bank of America raised its Walmart stock price target to $139 from $126 and kept its Buy rating.
The firm made the call before Walmart’s third-quarter earnings report, which is scheduled for Nov. 19.
The holiday season is near, and investors are asking whether the tools Walmart is introducing can help the company stay ahead through the holiday season and into next year.
Why Bank of America is more bullish on Walmart stock
BofA retail analyst Christopher Nardone sees Walmart having a strong quarter ahead. In a research note shared with me on Nov. 11, he forecast third-quarter earnings of $0.63 per share for WMT.
He also said he expects the company to raise its full-year sales and profit outlook to the top of its earlier range. An upgrade like that usually signals the business is performing better than its management initially guided, which is why Nardone also reiterated his Buy rating.
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Walmart earns most of its revenue by selling groceries and general merchandise through its stores and Walmart.com. The growing online marketplace adds another layer to Walmart’s business, allowing third-party sellers to list products on Walmart’s site while the retailer takes a cut of those sales.
With all three of those channels contributing to the company, Nardone now values Walmart shares at 44 times earnings. It was formerly 40 times.
He also wrote that the company is “poised to deliver continued share gains across both grocery and gen merch.” That means Walmart could keep taking more of the weekly grocery and household spending from rival stores, Yahoo Finance reported.
How Walmart’s new AI tools change the shopping trip
Walmart’s AI assistant, named Sparky, can now scan a photo of a handwritten shopping list and build a shopping cart in seconds.
The AI assistant also has a second feature known as “Shop to Light,” a feature on the Walmart app that makes the shelf price tag glow when you are searching for an item in the store.
That way, you don’t have to keep checking aisles to hunt for specific items. These new features improve the shopping experience.
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Walmart is also introducing Agent Profiles. Agent Profiles let you link an AI agent such as ChatGPT or Gemini to your Walmart account, TechCrunch reported. Those AI agents help you with automated shopping.
However, you can set spending caps yourself (Walmart suggests $50, $100, or $200). The agent never sees your card details, and you can turn it off at any time.
We argue Walmart is the biggest winner in our coverage in a world with greater agentic commerce adoption.
With these features and its business position, Nardone said Walmart’s “product assortment, low prices, and fast delivery capabilities position them well to succeed” in this new wave of shopping.
Rising grocery prices could test the everyday-low-price promise
BofA also included a warning in the note. Nardone flagged that oil prices have climbed and suppliers are already increasing wholesale prices. So he now expects grocery prices to climb about 0.5% to 1% more than earlier predicted.
Those higher costs will likely reach store shelves over the next six to 12 months.
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Walmart’s whole pitch has always been built on low prices, so if grocery prices increase, it will be a test for the company. BofA believes the risk is manageable, thanks to “Walmart’s focus on value,” which should keep shoppers loyal even if the demand for general merchandise softens.
For investors, this is one of the main factors to watch in the Nov. 19 report.
Marketplace and ads are quietly funding the growth
Walmart’s third-party marketplace grew 52% in the second quarter. Sellers tend to spend money so customers can find their products more easily on platforms like this.
According to BofA, these sellers use 10% to 12% of their sales proceeds on Walmart ads. That’s roughly double what Walmart’s own brand suppliers spend. That detail is important because ad revenue is a good thing for Walmart.
Ad revenue offers higher profit margins than selling groceries. It is also becoming a real driver of profit growth in the company. That’s why in June 2026, Walmart announced a deal to acquire Vibe.co.
Vibe.co is a connected TV ad platform, and Walmart reportedly purchased it for $1.4 billion. That shows just how seriously Walmart is treating advertising.
