A tale of two retailers: Walmart and Home Depot
Walmart rises after the US retail giant delivered an upbeat sales outlook, raised its annual dividend by 9%, and said it'll buy smart-TV maker Vizio for $2.3 billion. Home Depot fell after a disspointing forecast.
(AI Video Summary)
Walmart's outlook looking strong
Walmart and Home Depot are two big players in the retail industry, but they are having very different outcomes. Walmart is doing really well, with its sales projected to be higher than expected in 2025. This means that people are buying more from Walmart than experts were predicting. To make things even better, Walmart is also planning to increase the amount of money it pays out to its investors, called a dividend. And on top of that, they are buying a smart TV manufacturer called Vizio for $2.3 billion. All of this good news has caused Walmart's stock price to go up by almost 3% on the tastylive trading platform.
Tough times for Home Depot
On the other hand, Home Depot is not having such a great time. Their sales results are falling short of what experts thought they would be, and the number of people buying things from them has been going down for 11 quarters in a row. One reason for this is that people are spending less money on home remodeling projects and are being more careful with their budgets. Home Depot is expecting its sales to go down by about 1% for the next few years, which shows that American consumers are having a tough time financially.
The cost of living crisis in the US has made people more careful with their money, and this is hurting retailers like Home Depot. But even though Home Depot is having a rough patch right now, it has been able to handle difficult times in the past and come out strong. Looking at the 10-minute chart of the stock market, you can see that Home Depot's share value went down by 1.5% when their disappointing results were announced. On the other hand, Walmart's shares went up by almost 3% because people were excited about their good news.
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