Walmart+ as a standalone is estimated to be worth more than Coupang, eBay and Chewy
brightstars/iStock Unreleased via Getty Images

Walmart (NYSE:WMT) may have a secret weapon with its Walmart+ streaming asset as it continues to create traction with consumers. Morgan Stanley estimated that Walmart+ added almost 2M members since an early September estimate. That marks the largest sequential increase since August of 2021. The retail giant now has about 18.5M members or a 14.4% U.S. household penetration rate.
The firm noted that the positive inflection follows a period from August of 2021 through July of 2022 where membership was increasing at a much slower pace. The membership total addressable market (which MS defines as current members + very likely to subscribe members discounted by 25%) was ~27M, also a positive inflection and new record.
Analyst Simeon Gutman attributed the Walmart+ momentum to the recent addition of Paramount Plus with more than a quarter of respondents in a survey saying it was a factor.
Notably, Gutman thinks that disclosing Walmart+ membership could be a positive catalyst for Walmart (WMT) stock. After putting pencil to paper, Gutman estimated that the standalone value for Walmart+ could be $45B. Of note, that is a larger market cap than Coupang (CPNG) at $37B, eBay (EBAY) at $21B, Chewy (CHWY) at $16B, and Etsy (ETSY) at $14B.
Last month, Walmart (WMT) disclosed that Walmart+ members spend almost double normal customers of the chain.
Morgan Stanley has an Overweight rating on Walmart (WMT).
 See all the valuation metric on Walmart.