Walmart Crushes Earnings But Are We Really Surprised

Walmart's Numbers Go Up Is Anyone Really Shocked?

Alright alright alright. Let's talk about Walmart. Fourth quarter numbers go up. Nearly 6% jump in sales. Earnings and revenue beat expectations. Color me surprised... NOT. It's like expecting the sky to be blue chat. E commerce advertising third party marketplace – the usual suspects are driving the bus. Rainey the CFO is patting himself on the back about faster deliveries bringing in the high rollers. I guess if you can't afford that sweet sweet Mountain Dew Code Red you're not their target audience anymore. So yeah Walmart made money. Good for them. Now let's get back to farming gold in Elwynn Forest.

Amazon Takes the Crown A New King?

Hold on a second. Amazon's now bigger than Walmart in terms of annual revenue. Seven hundred sixteen point nine billion versus seven hundred thirteen point two billion. That's billion with a 'B.' Jeff Bezos is probably sipping champagne on his mega yacht right now laughing at everyone. This is a wake up call for Walmart. They're playing catch up trying to diversify like Amazon with ads and their marketplace. But here's the thing: can they do it better? Or will they just end up another minion in the Bezos empire? Only time will tell if Walmart can innovate fast enough to stay relevant. Speaking of fast have you seen this article on Pinterest Plummets Blaming Tariffs The Horror? It's another example of how swiftly market dynamics can shift in this hyper connected era.

The Rich Get Richer the Poor Get... Less?

Here's the part that stings. Rainey admits they're seeing "pressure on the lowest income cohort." Basically the rich are still spending but the poor are feeling the pinch. The "K shaped economy," as they call it. It's like gearing up in World of Warcraft with BiS gear while the other players are still wearing greys. Not a good look Walmart. You're supposed to be the store for everyone not just the one percenters. Maybe lower those prices on tendies huh? A little bit of compassion wouldn't hurt.

New CEO Same Old Song?

Doug McMillon is out John Furner is in. New CEO but it sounds like more of the same. Focus on online business attract more customers ramp up the high margin stuff. Look I get it. Gotta make those shareholders happy. But don't forget about the average Joe who's just trying to feed his family. Remember what happened to Arthas when he lost sight of his humanity? It's a cautionary tale Walmart. A cautionary tale.

Share Buybacks Is This a Good Thing?

They announced a new $30 billion share repurchase program. Thirty billion. That's enough to buy a small country. Instead they're using it to buy back their own stock. The goal is to increase the value of their stock. It's all about making the investors happy even though they could use those funds to reduce prices and increase salary. This is another cautionary tale from the same old song.

The Verdict Same Old Same Old?

So what's the final verdict? Walmart's doing well but they're facing some serious challenges. Amazon's breathing down their neck and the gap between the rich and poor is widening. They need to innovate adapt and remember who their core customers are. Otherwise they might end up like Blockbuster. And nobody wants that. Alright back to the grind. Time to stream.