Walmart Stock Crushed: 10 Biggest Shareholders Lose $14.7B (in One Day!)
Walmart had low prices and even lower stock on Wednesday. It closed down 10%, marking its biggest one-day drop in almost three decades. The company's top 10 shareholders got hit the hardest, losing $14.7B in just one day.
The plunge came after the world's largest retailer announced that its profit will take a possible 12% hit in the coming fiscal year. It also expects flat sales due to poor currency exchange rates.
Competition with retailers with an advantage, like Amazon and dollar stores, have also hurt. CEO Doug McMillon tried reassuring investors that the likely profit decline is part of a plan to run a tighter ship.
Under Doug's direction, Walmart has opened smaller, more convenient stores, and added online-with-free-pickup services. More store improvements and wage increases are underway, according to Doug and CEO of Walmart's US division Greg Foran.
For fiscal year 2017, Walmart expects earnings per share to be down 6% to 12%. But by 2019, it believes shares will be up 5% to 10%. [WSJ]