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Wal-Mart "cheapening" Buffett evaporated a day $ 450 million

over the years, Wall Street investors are very sensitive to corporate earnings reports, and huge stock price fluctuations caused by the performance really made a lot of investors heart beat faster.  The world's largest retailer, Wal-Mart issued a profit warning and let "God" he suffered a "Black Swan".

Wal-Mart stores suffered the darkest day

on 14th us stock trading, Wal-Mart shares fell 10.04% to $ 60.03, this is Wal-Mart's biggest one-day drop since the stock price 15, market value evaporated about 22 billion dollars a day, the total market value below $ 200 billion. As its main supplier of Hong Kong's Li and Fung group, also suffered.  Hong Kong's stock market trading session yesterday, Li Feng shares plunged 7%.

Wal-Mart shares fell mainly due to its Investor Conference, held in the day warning against future revenues. Wal-Mart expects fiscal year 2017 the net profit per share fell from 6% to 12%, analysts had forecast for the growth of 4%. In addition, Wal-Mart will continue to scale back capital spending before the fiscal year 2019, also cut the current year's sales expectations. Wal-Mart said, as the dollar continued to strengthen, and could lead to Wal-Mart's annual revenues of $ 15 billion.  It is reported that Wal-Mart about one-third of the one-fourth of the revenue and profits from the United States outside of unfavourable exchange rate will have a serious impact on performance.

Wal-Mart Executive Vice President and Chief Financial Officer, Charles predicted that earnings expectations largely due to Wal-Mart payroll increases and due to heavy investment on e-commerce. Fiscal year 2017 is Wal-Mart's highly engaged for a year. Wal-Mart staff, increased spending on training, and will continue to invest in business areas. Fiscal year 2019, Wal-Mart's earnings per share are expected to be between 5% and 10% growth. In order to restore the confidence of investors, Wal-Mart announced a new $ 20 billion stock buyback program. "Very disappointing earnings forecasts. "Edward Jones analyst jaburu says," what if sales of these investments cannot be made better, and that is the biggest problem.  "

losing business?

United States Department of Commerce released data showing September United States close to stagnation of retail sales, a slight increase of 0.1% per cent, making the whole retail sector shares were affected, United States shares of other retailers in the 14th US equities trading, decrease of 3% and 4%, respectively.  Bloomberg reports that the retail sales data are becoming more worried about United States economic follow-up force.

However, Amazon's share price declined only marginally on the day of 0.74%, the current market value of 254.8 billion dollars. All along, the market value of many technology companies will exceed Wal-Mart as a major milestone. In July this year, Amazon is officially on the market beyond the traditional retail Tycoon crocodile Wal-Mart.

in fact, Wal-Mart is trying to improve the shopping experience, online groceries delivered to expand its services and open more ways to win back customers such as Small Neighborhood Markets stores. Meanwhile, Wal-Mart invested US $ 1 billion to improve its website and a new distribution center opens, the goal is to accelerate the pace of delivery for online orders.  Market data show that Wal-Mart is now second only to the Amazon and Apple's third-largest Internet retailer.

some analysts said, comparing the market value of Amazon and Wal-Mart, and do not necessarily reflect the overall strength of the two companies compared. Because the capital markets do not always reflect a company's value. The idea of Sam Walton, founder of Wal-Mart as its steady, corporate performance is slow and steady, at every step. Amazon loss or profit in years, has been on the break-even line fluctuations.

 

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