Walmart's Stock Slides 1.15% as $3.19 Billion Volume Falls to 21st in Market Activity Amid Tariff Pressures and Mixed Earnings

On August 22, 2025, Walmart (WMT) fell 1.15% with a trading volume of $3.19 billion, down 37.28% from the previous day, ranking 21st in market activity. The decline followed mixed signals from its earnings and operational updates amid ongoing tariff pressures.

Walmart reported a 4.8% year-over-year revenue increase and a 25% rise in e-commerce sales, reflecting resilience in its core business. However, CEO Doug McMillon acknowledged rising costs due to tariffs, with expenses climbing weekly as inventory is replenished at post-tariff prices. The company has selectively absorbed tariff costs while cautiously adjusting prices, particularly in lower-income segments where price sensitivity is evident. CFO John David Rainey noted that global advertising revenue grew 46%, driven by the Vizio acquisition, and third-party marketplace revenue rose 17%, diversifying profit streams.

Despite optimism about U.S. consumer resilience, Walmart warned of continued cost pressures through Q3 and Q4. The company emphasized strategic sourcing, early inventory imports, and expanded discounts to mitigate tariff impacts. However, lower-income shoppers remain cautious, with reduced demand for non-essential items. Meanwhile, Walmart’s focus on private-label products and AI-driven initiatives, such as the Sparky shopping assistant, highlights efforts to retain customer loyalty amid inflationary challenges.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The CAGR was 6.98%, with a maximum drawdown of 15.59% during the backtest period. The strategy demonstrated steady growth over time, making it a robust choice for investors seeking consistent returns. However, the significant drawdown in mid-2023 highlights the importance of risk management in high-volume trading strategies.