Walmart shares take a bit of a tumble
A boom in online sales is being cited as the main driver in an 8.6 percent share drop for Walmart.
While the global retailer enjoyed robust holiday sales, lower product prices and online sales growth, the latter, which typically represents less profit opportunity, led to the stock dip, according to the Wall Street Journal.
Walmart released financials Tuesday reporting sales in stores increased 2.6 percent in the quarter, which represented the 14th consecutive quarter of growth. Sales via Jet.com, which Walmart bought 17 months ago for $3.3 billion, accounted for the decreased ecommerce growth. While online sales grew 24 percent, it had grown 50 percent in three previous quarters, noted WSJ.
"Walmart continued to generate increased traction on multiple fronts in the U.S.," Moody's retail analyst Charlie O’Shea told the WSJ, which noted Walmart is cutting marketing support for Jet.
The Walmart shares drop led to a slide of the Dow Jones industrial average, according to CNBC.