Walmart Just Posted Its Biggest One-Day Drop Since 2022. History Says What Its Big Drops Have Been Worth.

Walmart reported a 5.9% increase in revenue to $187.9 billion for its fiscal second quarter, which ended on July 31, and raised its full-year outlook. However, the stock fell by 9.2%, closing at $103.84, marking its worst single-day decline since May 2022. The decline was primarily due to a slowdown in growth, with U.S. comparable sales rising by only 2.6%, down from 4.6% the previous year and 4.1% in the previous quarter.

Despite strong performance in global e-commerce sales, advertising, and membership fees, the company expects a modest 4% to 5% growth in constant currency for the fiscal year, up from 3.5% to 4.5% previously. The price still trades at 37 times expected earnings, indicating that Walmart remains a premium-priced stock despite the recent drop.