'Fast Money' traders talk how high gas prices are impacting consumers following Walmart results
Speakers
Summary
Fast Money traders discuss Walmart's earnings and the impact of high gas prices on consumers. Guy Adami is bullish on Walmart's ability to gain share in a weak consumer environment. Steve Grasso prefers Amazon over Walmart due to valuation and growth concerns. Julie Hyman sees a long-term opportunity in Walmart despite near-term margin pressure.
- Walmart reported earnings indicating consumer pressure.
- Gas prices near 2022 levels are squeezing low-income shoppers.
- Guy Adami expects Walmart to bounce from recent lows.
- Steve Grasso favors Amazon over Walmart on valuation.
- Julie Hyman highlights Walmart's long-term customer acquisition potential.
- Kroger is cutting prices to compete with Walmart.
- Credit card data shows low-income consumers pulling back at month-end.
- Traders debate whether Walmart's premium valuation is sustainable.
Trade Ideas
Walmart benefits from weak consumer.
Walmart wins in a weak consumer environment because it can gain market share and benefit from customers trading down. Despite a rich valuation and the stock trading lower after earnings, the pattern from 3-4 quarters ago suggests a bounce from the low 90s. The cautious consumer backdrop is precisely where Walmart thrives.
Prefer Amazon over Walmart.
Walmart's premium valuation is not justified if it can't grow quickly, and Amazon offers a cheaper valuation with a stronger growth story. Walmart's ad revenue is growing but as a small portion of revenue. I'd rather buy Amazon at a cheaper valuation than own Walmart.
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This CNBC video, published May 22, 2026, features Guy Adami, Steve Grasso discussing WMT, AMZN. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Guy Adami, Steve Grasso · Tickers: WMT, AMZN