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4w ago

Walmart Faces $22 Billion Valuation Drop as Consumer Confidence Hits 12-Year Low

The retail giant struggles with declining spending power among customers, inflation, and fears of a looming recession.

A customer leaves a Walmart store on January 24, 2023 in Miami, Florida.
Walmart CEO Doug McMillon had also warned about consumer confidence during a Feb. 27 talk.
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Overview

  • Walmart's market capitalization fell by $22 billion on Tuesday following a 3.1% drop in its share price.
  • The decline coincided with U.S. consumer confidence reaching its lowest level since early 2021, as reported by The Conference Board.
  • The Expectations Index, a key measure of short-term consumer outlook, dropped to a 12-year low of 65.2, signaling potential recession risks.
  • Walmart CEO Doug McMillon cited 'stressed behaviors' among budget-constrained customers, including reduced spending and smaller purchases at month's end.
  • While Walmart's stock showed a slight 0.3% recovery in pre-market trading on Wednesday, broader concerns about inflation, tariffs, and economic uncertainty persist.