Former Walmart U.S. CEO Bill Simon says the retailer’s struggling stock is a buying opportunity, despite concerns over slowing profit growth and tariffs.
Simon believes that consumers will ultimately decide the impact of tariffs, rather than being deterred by them. He notes that companies like Walmart have the capability to mitigate effects by sourcing products from different places or developing private labels.
The sell-off has seen Walmart shares fall almost 9% this week, with a significant drop on earnings day. Simon thinks it’s an unusual reaction and praises the company’s performance, saying they “hit their numbers” despite uncertainties.
Despite being down 10% from its all-time high, Walmart’s stock is still up about 64% over the past year. Simon forecasts that higher-income consumers may shop at Walmart permanently due to economic conditions and geopolitical backdrop.
Source: https://www.cnbc.com/2025/02/22/walmart-sell-off-bizarre-buy-stock-despite-tariff-risks-bill-simon.html