Costco Wholesale Corp (NASDAQ:COST) shares are tumbling Thursday as the stock moves in potential sympathy with Walmart Inc (NASDAQ:WMT) after its latest earnings report and forward guidance disappointed investors.
- Costco Wholesale stock is facing resistance. Why is COST stock trading lower?
Walmart’s Guidance Weighs On Retail
Walmart posted first‑quarter revenue of $177.8 billion, topping estimates, and matched expectations with adjusted earnings of 66 cents per share. But the tone shifted when Walmart issued its second‑quarter forecast.
The company projected adjusted earnings of 72 to 74 cents per share and revenue of $182.8 billion to $184.6 billion, both below Wall Street expectations. Walmart also reaffirmed its full‑year outlook, which remains under consensus.
Retail Investors React To A Cautious Outlook
Walmart’s report showed strong areas of growth, including a 26% jump in U.S. e‑commerce, a 45% surge in store‑fulfilled delivery and a 36% increase in advertising revenue. International sales and Sam’s Club — which is …