Bill Simon, Former CEO of Walmart U.S., weighed in on Walmart Inc. (NASDAQ:WMT) first-quarter results and its stock valuation.
Simon commended the company’s digital sales growth in its recent quarter, despite the economic challenges presented by high gas prices. Speaking on CNBC’S ‘Fast Money’ on Thursday, he lauded Walmart’s digital sales, which surpassed total U.S. growth for the first time, while in-store sales remained stagnant or fell. Simon suggested that this shows the upper echelons of the economy continue to shop, despite economic pressures.
Simon also praised Walmart’s strategic shift to NASDAQ, repositioning itself as a tech company. He believes this, along with the company’s investments, has allowed Walmart to fulfill its tech company narrative. He noted that an increasing share of the company’s digital sales is being made through physical stores, showing the integration of physical and digital retail.
“Hard to imagine that they are getting the beating that they are getting,” said Simon.
However, Simon expressed concerns about Walmart’s current valuation, stating it was “difficult to rationalize.” He added that, given a choice, he would put his money on Target Corporation (NYSE: