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Walmart (WMT) Announcement Suggests Headwinds For Amazon (AMZN) - BofA

July 26, 2022 10:37 AM EDT

Aftermarket Monday, Walmart (NYSE: WMT) preannounced a lower profit outlook for the second quarter and fiscal 2023 primarily due to "pricing actions aimed to improve inventory levels."

The report has resulted in a more than 8% plunge for Walmart. However, analysts have warned the announcement may spell potential headwinds for Amazon (NASDAQ: AMZN) as well.

Speaking on Walmart, Morgan Stanley analyst Simeon Gutman said the 11% cut to fiscal 2023 EPS (-16.5% vs. original guide) is another warning shot for retail and challenges their view of Walmart as a... More