Walmart's worst week since 2022: Retailer's former U.S. CEO Bill Simon thinks Wall Street is getting earnings, tariff risks wrong

Core Viewpoint - Walmart's stock sell-off, attributed to slowing profit growth forecasts and tariff concerns, presents a significant investment opportunity according to former U.S. CEO Bill Simon [1][5]. Group 1: Stock Performance - Walmart shares experienced their worst weekly performance since May 2022, dropping nearly 9%, with a more than 6% decline on earnings day, marking the worst daily performance since November 2023 [3]. - The stock is currently down 10% from its all-time high reached on February 14, but it has increased approximately 64% over the past 52 weeks [5]. Group 2: Tariff Impact - Simon believes that even if U.S. tariffs against Canada and Mexico are implemented, Walmart will remain unaffected as consumer choices will dictate purchasing behavior [2]. - Major retailers like Walmart have the capability to mitigate tariff impacts by sourcing products from different locations and developing private labels [3]. Group 3: Market Sentiment - Simon finds the recent sell-off perplexing, stating that typically strong earnings should lead to positive market reactions, indicating a disconnect in market expectations [4]. - The current economic and geopolitical landscape may lead higher-income consumers to shop at Walmart more permanently, suggesting a shift in consumer behavior [5].