WMT is trading at $122.29 (-3.4%) in pre-market despite beating Q4 earnings expectations, as investors focus on tariff headwinds and a premium valuation.
- The company reported $190.7B in revenue and $0.74 adjusted EPS (beating the $0.73 estimate), driven by 24% eCommerce growth and 10.8% operating income growth.
- Sentiment is dampened by concerns over 13% average tariff rates and an elevated forward P/E of 45.31x, which remains well above the retail industry average of 41.22x.
- Broader market weakness is also pressuring the stock, with the S&P 500 and Nasdaq trading down 0.23% and 0.35% respectively.