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Walmart's Post-Earnings Selloff Weighs on Dow and S&P 500
ByAinvest
Friday, Aug 22, 2025 9:04 pm ET1min read
US benchmark equity indexes were lower intraday due to a selloff in Walmart shares following its earnings report. The Dow and S&P 500 were affected by the decline.
Title: Walmart Stocks Plummet Following Q2 Earnings MissUS benchmark equity indexes were lower intraday due to a selloff in Walmart shares following its earnings report. The Dow and S&P 500 were affected by the decline.
Walmart Inc. (WMT) reported earnings per share (EPS) of $0.68 in the second quarter (Q2) 2025, which fell short of Wall Street expectations of $0.73 [2]. The company's revenue stood at $177.4 billion, also below the anticipated $175.9 billion [2]. The earnings report led to a 5% drop in Walmart's stock price by midday Thursday.
The broader market sentiment was negatively impacted by the earnings miss, as the S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) both experienced declines of 0.44% and 0.56%, respectively [2]. The selloff in Walmart shares was compounded by the overall uncertainty ahead of Federal Reserve Chair Jerome Powell's remarks at the Jackson Hole summit.
Despite the earnings shortfall, Walmart's stock has shown resilience, with a year-to-date gain of 8% [2]. The company's stock is currently trading at $97.96, which is a discount to the consensus price target of approximately $110.95 [1]. This suggests potential room for appreciation if the forecasted growth aligns with expectations.
Walmart's performance over the past five years has been robust, with a total shareholder return, including dividends, reaching 130.58% [1]. However, the company faces ongoing risks such as foreign currency fluctuations and the transition costs associated with e-commerce expansion. Walmart's focus on enhancing operational efficiency through supply chain automation and technology investments is crucial to stabilizing or enhancing the share price relative to the price target.
Investors should closely monitor Walmart's progress in strategic areas such as membership, marketplace, and advertising, which are poised to bolster both revenue and earnings. The recent earnings report provides a solid backdrop for these growth narratives, reducing risk perceptions related to the company's ongoing investments in higher-margin segments.
References:
[1] https://finance.yahoo.com/news/walmart-wmt-reports-us-177-173522815.html
[2] https://newsable.asianetnews.com/markets/walmart-xpeng-coty-bilibili-instacart-stocks-making-the-biggest-moves-today-articleshow-d13lg19
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