Good Morning everyone. Wal Mart just lowered both next quarter and full year guidenace by quite a bit. Does anyone look at this as a sign the economy is slowing? To me this is surprising because its Wal Mart and they sell at a discount to the middle clsss.
I honestly did not see this coming. This is quite amazing to see. I have been wanting to know when the consumer would finally run out of buying power but to be honest every time I think the consumer is done they come back stronger. Where they get money to keep spending is beyond me....it is quite amazing how resilient the consumer is and how they spend money they don't even have!
I just posted this on my journal... New trade today...Walmart (WMT). Their earnings came out good/fair. They reduced their guidance (I believe)...So the stock dropped. Bought 100 shares in my Roth IRA at $97.28 Then did a covered call for the Jan 26 $100. I got $8.80 ($880) for the option...Also they have raised their dividend. Buy and hold...Unless it's called away. Why I like it...I use to own it. Had it called away a year or two ago. Industry leader...great distribution (top notch). They sell stuff you need, not just want!! My biggest premise..."The last mile". I think Amazon and their 3rd party delivery companies have employees who are ticked off at what they are getting paid...For what they do. They will probably rebel in some ways. This doesn't include the warehouse distribution people!! If they get hit, Walmart should profit. It's funny, I go to the local Walmart grocery and see tons of "pickers" grabbing stuff off the shelf. They walk the products to the designated parking area and people pick it up. The customer becomes "the last mile"... Yeah, I know all the stores are doing this. It's just that Walmart if very good at it and has it down to a science...Target (higher prices) is slower in catching on. If I own the stock in Jan 26 and the price is above $88.00 a share, (not called away), I will consider this a win.
Walmart was Basking in massive illegal Immigrant EBT revenues. The EBT has ended and the illegals are being sent home. The store has become another KMart. No one wants to work there. Horrible prices, terrible costumer Relations, Horrible vibes and atmosphere. Prolly now run buy the youngest generation of Walmart Family (the True Low IQ Generation). Older ones have prolly cashed out and live in Monaco. https://www.choicehacking.com/2024/02/09/the-secret-psychology-behind-kmarts-failure/ They have developed this big funnel of pushing all shopper thru the 15 items or less self checkout. Non of their checkout systems work. The have 7 cameras at each checkout to scan, photo, track and sell your every movement to data miners. If you didnt see walmart's demise coming..then you are prolly on some kinda Dope. And ...when Kmart fell..it all happened very very quickly. Stock lost 72% of its value in 14 months. In my opinion..Walmart is a FULL ON short. Long Term Short Play.
Kmart fell because Walmart and Costco kicked their butt!! No one can come after Walmart...Not even Target (too big of a moat). Another Amazon Go will close next month The retailer will shutter its c-store in Woodland Hills, California, on Feb. 26. Its total store count has decreased by about 50% since early 2023. Amazon has shuttered roughly half of its Amazon Go stores over the past three years as the e-commerce company has struggled to build and maintain its brick-and-mortar presence. Their Whole Foods is different from Walmart...Apples and oranges.
Walmart did not mention its stock has been on the uptrend since centuries ago. Those who HODL Walmart should be laughing all the way to the bank.
This might explain part of it https://www.elitetrader.com/et/thre...elinquency-rates-at-13-yr-highs.383227/unread