Part 3/7:
Market Reaction and Stock Analysis
The market's response to Walmart's earnings report was tepid, with pre-market stock price sliding to $97—a 7% drop from the previous day’s close of approximately $104. Key technical levels indicate support at $93.40 and resistance at $104. The average cost basis for investors stood at $92.90, signaling caution among market participants.
Despite the negative market reaction, Walmart saw a capital inflow of $3.1 million on February 18, suggesting a degree of optimism ahead of earnings. However, there were notable outflows between February 11 and 14, likely reflecting institutional investors' profit-taking behaviors. Concerns about declining EPS, despite impressive revenue and operating income figures, have been a driving force behind the stock sell-off.