Remember that song from the 80’s?
“My future’s so bright… I gotta wear shades?”
It may not have been one of my favorites – but it sure was a catchy tune. I bet you’re even humming it a little right now.
Regardless, there’s a lot of people who THINK they have a bright future ahead of them – due to their current circumstances.
Things seem to be going well – they’re making all the right moves, and everything just seems to work in their favor.
However, if there is one thing we know for sure – it’s that the past doesn’t always predict the future.
We’ve seen the mighty fall before…
Remember when Sears was one of the top selling brands in the North American continent?
Yeah, the problem with being on top of the mountain – is that you can’t stay up there forever…
And it seems that may be something that Walmart may need to find out.
They’re safely perched on top of the mountain…
But will they stay there much longer?
Let’s find out…
Yes, Walmart (WMT) just dropped a solid set of earnings – proving once again that when it comes to dominating retail – no one does it quite like it.
The holiday season brought in more revenue and profit than investors expected – with sales staying strong across all categories…
But before anyone could celebrate – Walmart hit them with a reality check: keeping up that momentum in 2025 might not be so easy.
So, let’s talk numbers…
Walmart is forecasting sales growth of 3% to 4% – which is right in line with analyst expectations.
Which is great, right?
But here’s where things get messy…
Annual profit is only expected to rise between 3.5% and 5.5% – and that’s before factoring in acquisitions and the extra day from the leap year – which could knock 1.5 percentage points off that growth.
Investors, who were hoping for profit growth closer to 10% – didn’t take the news well.
They showed their disappointment the old-fashioned way…
By sending Walmart’s stock down 9% right out of the gate.
So, why the cautious outlook?
What’s got investors’ clutching their peals?
Tariffs.
Walmart prides itself on stocking plenty of made-in-America products…
But about a third of its goods come from abroad.
If the proposed import taxes on products from Mexico and other countries become reality – Walmart will literally pay the price.
Sure, it could pass those costs on to shoppers…
But that’s a risky move – too much price pressure – and customers start looking elsewhere.
And speaking of tariffs – Chinese companies aren’t off the hook.
But while Walmart’s trying to manage expectations – Alibaba (BABA) pulled a magic trick and made investors forget about all that tariff talk – for now.
China’s biggest retailer posted better-than-expected revenue and profit – sending its stock soaring 10%.
The big reason?
AI-powered cloud computing.
Alibaba’s cloud division has been crushing it, proving that even traditional retail giants can reinvent themselves for the AI era.
So where does that leave Walmart?
Still a juggernaut – but one facing some serious challenges.
The company’s future success depends on how well it navigates trade policies, inflation and consumer spending trends.
If Walmart plays its cards right, it could weather the storm and keep investors happy…
But if tariffs start biting and customers start balking at higher prices?
Things could get messy.
That’s why in today’s market, you can’t just react – you need to be ahead of the game…
And that’s exactly what GorillaTrades is all about.
We don’t follow hype. We follow data – giving our members real, actionable insights before the rest of the market catches on.
We’ve built our reputation over YEARS of helping make sure our members have the best chance to make money…
And the way you do that is to make sure you use numbers and not “gut instinct” when finding recommendations with the best opportunity to profit.
The choice is simple…
Want to be on the winning side of the trade? Join GorillaTrades today.
However, we understand that there are people who would rather do their own work – and for those people we say: go for it!
However, if you want a better shot at winning than losing – you might want to give us a shot.
Either way, we’ll be here when you need us. Till next time…
“The secret of business is to know something that nobody else knows.” – Aristotle Onassis
