Walmart Just Posted Its Biggest One-Day Drop Since 2022. History Says What Its Big Drops Have Been Worth.
The retail giant raised its full-year outlook and still lost 9% in a day. Its three bigger drops of the past 15 years have one thing in common.
Overview
Walmart (NASDAQ:WMT) reported revenue up 5.9% to $187.9 billion for its fiscal second quarter (the period ended July 31) on Thursday, Aug. 20, and raised its full-year outlook. The stock fell 9.2% anyway, closing at $103.84, down from $114.30. It was Walmart's worst single session since May 2022.
The problem wasn't the quarter's totals. It was the growth rate underneath them. U.S. comparable sales rose 2.6%, and the deceleration is now hard to miss -- a year ago, this quarter's comp growth was 4.6%, and the fiscal first quarter's was 4.1%.
Details
Thursday's drop was the fourth-largest of the past 15 years. And that rarity is useful, because the three bigger ones each come with a date and a documented aftermath.
Source
Originally published at www.fool.com.