We recently published 10 Stocks Jim Cramer Talked About. Walmart Inc. (NYSE:WMT) is one of the stocks Jim Cramer discussed.
Walmart Inc. (NYSE:WMT) factored into the discussion due to two reasons: its earnings report and the decision to transfer its listing to the NASDAQ stock exchange. Cramer had plenty to say about both developments. Walmart Inc. (NYSE:WMT)’s fiscal third-quarter earnings report saw the firm post $179.5 billion in revenue and $0.62 in adjusted earnings per share to beat analyst estimates. The firm also raised its full-year sales growth guidance to 4.8% and 5.1% from an earlier 3.75% to 4.75%. Previously in the week, the CNBC TV host had spent quite some time discussing Walmart Inc. (NYSE:WMT)’s major announcement that its CEO Doug McMillon would leave the role and hand over the baton to John Furner. He discussed the firm’s turnaround under McMillon and added that he wanted to meet the new Walmart Inc. (NYSE:WMT) CEO to form a conclusive opinion about him. In this appearance, Cramer kept the faith with the firm and shared key insights about its NASDAQ transfer:
“Right but at the same time we know that they overestimated how badly the tariffs would hit them. And that was very bullish. And I also think that it makes me think, what happened with Target yesterday? Exact opposite. Target’s falling behind Walmart and it’s becoming a bigger gulf.
“[After David pointed out that the only thing he had an issue with was a tiny miss in the second quarter for gross margins and pointed at a healthy valuation] Uh, they’re doing the right thing by America. . .they have great ecom, they grew ecom 28%. . .these are incredible numbers.
“What he basically did is, stand the paradigm on its head. We’re gonna pay our people much more. Because if they’re happier and do better, everybody makes more money. Exact polar opposite of the way it was before Doug McMillon.
“Walmart’s quarter was much stronger than expected, but last night, Laura Alber on Mad Money talked about how Williams-Sonoma is going to have a tough fourth quarter because the tariffs are coming. So when I hear tariffs not as bad, I get very excited and I grab Walmart. The price target’s going to move up tomorrow. Be a lot of congratulatory stuff about Doug McMillon, it’s going to be a love fest. I’d like to get ahead of the love fest. It’ll be like Woodstock, the Bentonville Woodstock. . .
“Well, Walmart’s moving to the NASDAQ. John Rainey, the, who was the man who [inaudible] the call, was on the board of NASDAQ. Then resigned when he moved over to Walmart. It looks like now thatDoug McMillon is moving on, boom, goes right to the NASDAQ. Now what does it mean? I think that there’s always been a tug of war about this. Is Walmart going to be better served on the NASDAQ than the New York Stock Exchange? I don’t think it’s a real edge to go over to the NASDAQ, but you could say, listen, my studio’s right here, maybe I’m a home team guy.
“[After Carl pointed out that shifting to the NASDAQ gave them a tech flair] Yeah, that’s what I’m, I, yes, I think that it does do that but I think the New York Stock Exchange is, do you really want to leave the stock exchange? To me, it’s still the premier place for capitalism. But at least understand it was Rainey I think who made the decision once, because Rainey did resign from the NASDAQ board.”
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While we acknowledge the risk and potential of WMT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WMT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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