Wallmart Stock Plummets on Slowing Sales Growth

Walmart shares have fallen sharply by -9.08% in recent days, sparking concern among investors.

The decline comes despite the retail giant beating Wall Street's earnings and margin expectations for its latest quarter.

However, analysts point to slower U.S. comparable sales as a major factor in the stock's drop, citing softer store traffic, weaker pharmacy sales, and high gas prices affecting low-income shoppers.

Walmart has decided to reinvest around $3 billion in tariff refunds into price cuts, which could weigh on operating income growth in the second half of its fiscal year.

Despite this, major banks such as Morgan Stanley, Bernstein, BofA, TD Cowen, and Goldman Sachs have maintained their Buy or Outperform ratings for Walmart stock.