Walton Net Worth Surges $50 Billion

Walmart (NYSE: WMT | WMT Price Prediction) became the first “non-tech” company to cross the $1 trillion market cap barrier. The reason, according to many analysts who cover the stock, is that Walmart has become modern. According to The New York Times, the company’s “rapid e-commerce growth and push into automation and artificial intelligence propelled its stock into the trillion-dollar club.” Maybe so. However, at its heart, it remains a bricks-and-mortar company with over 5,000 stores in the US and 1.6 million employees. This makes it the largest employer in America, outside the US government

Another thing occurred as Walmart crossed the threshold. The Walton family, descendants of founder Sam Walton, got much richer. Together, their net worth increased by $50 billion this year, according to the Bloomberg Billionaires Index.

Three of Sam Walton’s children are on the billionaire list. Together, the family controls between 45% and 47% of Walmart shares. Son Jim Walton has a net worth of $152 billion, which is up $16 billion so far this year. Son Rob Walton’s net worth is $149 billion, up $15 billion for the same period. Daughter Alice Walton’s net worth is $148 billion, up $15 billion. Grandson Lukas Walton’s net worth is $51 billion, up $5 billion this year.

The notable thing about the Waltons is not just their net worths. It is that, among the top 14 people on the Bloomberg Billionaire list, they are the only ones who did not found or run their own companies. And tech leaders dominate the top 14 on the list, accounting for nine.

Much of Walmart’s success is due to Amazon (NASDAQ: AMZN). Amazon blitzed the retail market with e-commerce. Walmart and other big retailers were caught flat-footed. Part of Walmart’s rising market capitalization is simply because it entered the e-commerce sector. And, Walmart added several new facets to its business that Amazon could not match. First among these is the ability to drive to stores to pick up online orders.

Much of Walmart’s stock price surge is due to what tech could do for it in the future. (The stock is up 28% over the last year while the S&P 500 is 15% higher). AI may help Walmart make more efficient orders. It has a massive supply chain. In stores, it may replace humans, both for inventory placement, and to aid customers. For the most part, however, these advantages are in the future.

The Walton family has gotten richer. If Walmart’s move into advanced tech does not pay off, their net worths could quickly drop. They are rich enough, however, that it won’t matter.