Should You Buy Walmart Stock After Its Latest Announcement?
Walmart (NYSE: WMT) updated investors about its business outlook after the markets closed on Monday, reporting that consumer spending is shifting faster than it had anticipated. Among the side effects of the pandemic have been supply chain disruptions and global shortages that have raised prices on everything from groceries to fuel. That inflation has been further propelled by geopolitical issues, which have reduced the supplies of crude oil and natural gas reaching the market, pushing energy prices higher.
The result of this is that folks have less money for discretionary items like TVs, apparel, and other general merchandise of the types that they spent more heavily on earlier during the pandemic, when lockdowns and social distancing measures meant they were spending much more of their time at home. Walmart said it would have to mark down prices on those types of products to move its excess inventory. The stock closed Tuesday's session down by 7.6% in the wake of the announcement.
But now, that share price dip has some investors asking if this is a smart time to buy Walmart stock.
Source Fool.com
