Walmart Shares Plunge 9% After Weak Sales Guidance
Walmart shares suffered their steepest one-day drop in four years after the retailer reported poor same-store sales and issued lackluster future guidance.
Shares of Walmart fell 9% on Thursday, marking the company's steepest one-day decline in four years. The sell-off occurred after the retailer reported a significant miss on same-store sales and provided weak guidance for the coming period. Market analysts attributed the decline to growing concerns over spending habits among lower-income consumers and the potential impact of tariff refund laps in 2027.
Despite the sharp drop, the majority of market analysts remain optimistic. Forty out of 44 analysts covering the company maintained a buy or strong buy rating. JPMorgan lowered its price target for the stock from $137 to $125 but kept an overweight rating, characterizing the price drop as a buying opportunity.
JPMorgan analyst Christopher Horvers argued that the market wash out is complete. He suggested that the company remains well-positioned to grow through the expansion of alternative profit pools and the implementation of AI automation.
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