Walmart stock falls 8% on investor worries about inventory
Walmart's stock dropped 8% on Thursday, surprising many since the company just posted impressive numbers for its second quarter.
Sales hit $187.9 billion (up 5.9% from a year earlier), with e-commerce booming by 23% and operating income rose 28.8%.
But despite these wins, investors are worried about Walmart's rising inventory levels and what that could mean for performance down the line.
Walmart ad revenue grows 38%
Walmart's global inventory grew by 6.7%, or 6% on a constant-currency basis, due to strategic initiatives and inflation.
This has some investors nervous about rising inventory and underlying performance.
On the bright side, Walmart's ad business soared with a 38% revenue boost, and membership fees jumped 17%, showing people are still signing up for paid perks.
Still, those inventory concerns ended up overshadowing all the good news this quarter.