Shares of Walmart (NYSE:WMT) fall despite strong third-quarter results and raised guidance. Home Depot (NYSE:HD) hits a new all-time high after a monster third quarter fueled by higher average tickets. Motley Fool analyst Bill Mann analyzes those stories and weighs in on the Green Bay Packers selling $90 million worth of stock in the team.
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This video was recorded on Nov. 16, 2021.
Chris Hill: It’s Tuesday, November 16th. Welcome to Market Foolery. I’m Chris Hill. With me today, the one and only Bill Mann. Good to see you.
Bill Mann: Chris, it’s delightful to be with you. You doing all right?
Chris Hill: I’m doing all right. We’ve got sports news for investors or it might be investing news for sports fans, I’m not sure which. But we’re going to start with some big retail earnings. Walmart’s third quarter profits and revenue came in higher-than-expected. Same-store sales were higher than expected. They raised guidance. You would think the stock would be shooting up, but it’s Walmart. That’s not the case.
Bill Mann: It’s not a shooting-up stock, is it?
Chris Hill: It’s not. But it’s interesting because there are some people who’re dinging Walmart on their gross margins. I suppose I understand that, if you’re just going to judge them on their gross margins aren’t as lovely as they could be, I get that, but to me, Bill, the value proposition for customers is still very much at the heart and center of what Walmart is doing.
Bill Mann: Exactly. Think about this. Think about the size of the Walmart revenue base, and it was up 9.2 percent. That is massive. That means that Walmart is taking market share. The other thing that they said that was really, really interesting in an environment in which we are all worried about supply chains, one of the first things that they said was? “Hey, our shelves are stocked. We are ready for the holiday season.” Whichever holiday you’re talking about. I do hope they were talking about Thanksgiving because you’re not supposed to talk about Christmas before Thanksgiving goes by. But they did raise prices. Their traffic was up 5.7 percent over the same quarter last year, and spending was up 3.3 percent. This is Walmart we’re talking about. This is not a company that likes to go to its prices …….