Walmart's market capitalization has fallen below $900 billion, just five months after surpassing $1 trillion, following a quarterly earnings report that failed to exceed Wall Street's lofty expectations. The retail giant's stock declined after its fiscal 2027 first-quarter results, which ended May 1, showed revenue beating consensus estimates but profit only meeting expectations and full-year guidance being reaffirmed rather than raised. Despite the sell-off, Walmart's e-commerce and digital advertising businesses continue to grow at double-digit rates, with global advertising revenue up 37% in the quarter. The company faces headwinds from tariffs and higher inflation, and it recently announced price cuts to attract budget-conscious shoppers. Long-term investors may still find value in Walmart, which offers an annual dividend of $0.99 per share yielding about 0.9%.
Walmart Inc.Earnings report missed lofty expectations, profit only met estimates, and full-year guidance was reaffirmed rather than raised, causing stock decline.