Walmart (WMT) Stock Drops Over 6%

As shown in the Walmart (WMT) stock chart, trading on 20th February closed at $97.26, whereas the previous day, the stock was trading around $103. The decline of over 6% marks the largest drop in Walmart (WMT) stock price in 15 months.

Why Did Walmart (WMT) Stock Drop?

The bearish momentum emerged after Walmart’s earnings report, which was actually quite strong, as:
→ Sales growth reached 5.2%;
→ The company exceeded analysts' expectations (earnings per share were 2% higher than forecasts);
→ Walmart announced a 13% dividend increase.

However, WMT stock fell because the retail giant released a profit forecast for 2025 that came in below market expectations. This was attributed to uncertain consumer behaviour and geopolitical conditions. Additionally, investors may have been dissatisfied with increased executive compensation.

Walmart (WMT) Stock Technical Analysis

The chart shows that after the decline, the price is consolidating near support levels formed by:
→ The lower boundary of the ascending channel;
→ Former resistance around $96.

The situation resembles November 2023, when the market also reacted negatively to an earnings report. However, WMT stock later recovered, and a similar scenario could unfold in 2025.

Analytical Walmart (WMT) Stock Price Forecasts

Analysts remain optimistic. According to Yahoo Finance:

→ The average 12-month price target for WMT is $107.25;
→ Of the 42 analysts surveyed, 38 recommend buying WMT stock.

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