Motley Fool senior analyst Jason Moser discusses:
- Walmart (WMT 0.80%) cutting guidance for the quarter and full fiscal year.
- The ripple effect for shares of Amazon, Costco, and Target.
- Shopify CEO Tobi Lütke’s memo to employees about layoffs.
- Whether Shopify’s falling stock, close to a three-year low, looks like a buying opportunity.
Robert Brokamp talks with financial psychologist Dr. Brad Klontz about why we’re all a little crazy about money.
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This video was recorded on July 26, 2022.
Chris Hill: Walmart went down and took a bunch of retailers with it. Motley Fool Money starts now.
I’m Chris Hill. Joining me today, once again, back by popular demand, Motley Fool Senior Analyst Jason Moser. Thanks for being here.
Jason Moser: I don’t know about the popular demand, but thank you for having me.
Chris Hill: How about this: coming out of the bullpen?
Jason Moser: Whatever it takes, right?
Chris Hill: We got to talk about retail because that is the story of the day. And we’ll start with Walmart. Walmart doesn’t report earnings until mid-August, but shares are down 8% this morning, which, for a company of its size, is an enormous move. Walmart cut guidance for the current quarter and the full fiscal year. They say higher prices are causing customers to buy less. So Walmart is cutting prices to reduce inventory.
It’s not just Walmart, Jason. This is a retailer of such size and importance that it is dragging other major retail stocks down with it — Target, Amazon, and Costco, just to name three.
Jason Moser: I think this really does speak to the pernicious nature of inflation. It’s something that we talked for a long time, many years. It just felt at some point another, inflation was going to have to rear its ugly head, and then it just sneaks up on you. Now, all of a sudden, it’s what we’ve been talking about here for most of the year. It doesn’t look like it’s a discussion that’s going to be ending anytime soon.
The interesting thing here in regard to Walmart is they’re actually calling for U.S. comp sales to clock in a little bit higher …….
Source: https://www.fool.com/investing/2022/08/06/walmart-warns-shopify-stumbles/
