Walmart just flashed a warning sign about the US consumer
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Walmart just posted its weakest comparable sales in over a year and the stock is sliding hard, yet one top UBS analyst is doubling down on his buy rating and says the three forces that drove shares to record highs are still very much in play.
Walmart beat estimates, raised guidance, and watched its stock crater 9% anyway. The reason buried in the CFO's comments explains why the quarter's biggest win may actually set up a painful Q3.
Walmart is due to report earnings Thursday morning, with traders anticipating a big move from the retailer’s stock following the results.
Walmart raised its full-year financial forecasts after beating Wall Street expectations for revenue and adjusted earnings in the latest quarter, but the stock WMT fell over 7% during premarket trading as US comparable sales came in well below expectations. Investors also focused on slowing traffic and weaker spending per transaction.
Walmart stock fell 9% after earnings despite beating estimates and raising guidance. The retailer will add Apple Pay and Google Pay Tap to Pay from August 24.
Walmart's setup: durable comp momentum, a scaling advertising business and a defensive sector profile when consumer sentiment is fragile.
Walmart stock falls 0.92% to $102.64 as the retailer expands its EV charging network to 100 locations across 20 states, boosting nationwide charging access.