LanlanCC
08-21 14:44

Yesterday's bloodiest stock story was Walmart. The surface data is all good news: EPS is $0.81 better than expected $0.74, revenue of 1,879 billion higher than expected 1,868 billion, and annual guidance has also been increased. But the stock price plummeted 9.2%, the largest single day decline since July 2022

Walmart, traded at 40 times P/E, its valuation implies an assumption that it successfully transformed into a tech-enabled commerce platform. But when a company with a net margin of just 3%, revenue growth rate of 56% enjoys the premium of growth stock, any guidance miss is seen by the market in a magnifying glass.



$沃爾瑪(WMT)$  

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Comments

  • chizzoo
    08-21 15:32
    chizzoo
    Chart got wrecked too. That high volume breakdown through short-term moving averages is a straight stop-loss signal, any bounce now just looks like exit liquidity.
  • quixi
    08-21 15:32
    quixi
    Who said 40x earnings was ever reasonable for Walmart? A 3% net margin is normal in retail, the real issue was paying growth-stock multiples for a cash flow machine.
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