Coming out of the fourth quarter, Walmart is facing three pressing challenges — Amazon, Warren Buffett and President Donald Trump.
Warren Buffett’s Berkshire Hathaway dumped 90% of its Walmart holdings, totaling some $900M, at the end of 2016 in a signal Buffett doesn’t believe the world’s largest retailer can overcome Amazon, the Wall Street Journal reports. That is taking into account the fact Walmart has taken big steps to beef up its online component. While we will not know the full story until the firm releases its Q4 earnings report Tuesday, analysts polled by FactSet predicted Walmart’s revenue will fall to $1.29 a share from $1.49 a year earlier.
Walmart also stands to lose should the president impose heavy tariffs or implement a border-adjusted tax. Like many retailers, Walmart is nearly entirely dependent on overseas factories and would be devastated by a new import tax.
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