Why Walmart’s Stock Hit an All-Time High but Target’s Slumped on Q3 Earnings | Global News Avenue

Target(TGTAfter Walmart reported earnings on Wednesday, the company’s stock price fell to its lowest level since November (WMTAfter the company released its third quarterly report, the stock price reached a new high.

Target third quarter The result is not up to standard In line with analysts’ expectations, while Walmart beats expectations As executives say Retailers continue to profit Market share of high-income customers. The move marks the second time this year that Target and Walmart stock prices have gone in opposite directions after earnings reports, as they did the same thing Following first quarter results in May.

Trends identified by retailers at the time—such as the value-seeking behavior of customers at different income levels, This is good for Walmart——continues into the third quarter. Both retailers said customers have responded they lowered the price exist Thousands of productsand said they plan to continue doing so during the holidays.

Walmart and Target recognize the importance of value and convenience to today’s consumers

“Consumers tell us their budgets remain stretched and they are shopping cautiously, trying to overcome the cumulative impact of years of price inflation,” Target said. Chief Executive Officer (CEO) Brian Cornell said on Wednesday’s earnings call, according to a transcript provided by AlphaSense. “Their shopping behavior is becoming increasingly resourceful, waiting until the last minute to buy when needed, focusing on deals, and then stocking up when they find deals.”

Cornell also said Target’s response to sales events was stronger than usual. Chief Commercial Officer Rick Gomez noted that consumers appear prepared to wait for sales and search across multiple retailers to find the best prices on what they want.

Walmart CEO Doug McMillon said Tuesday that 75% of Walmart’s market share growth this quarter was among households earning more than $100,000, according to a transcript of Tuesday’s earnings call provided by AlphaSense.

Both retailers said convenience features like curbside pickup and fast delivery as part of their loyalty programs saw strong growth during the quarter, underscoring the importance of making shopping easy for customers.

“We know that when we make it easy to shop at Target in a variety of different ways, our guests will reward us over time by spending more at Target,” Target said. Chief Operating Officer (COO) Michael Fidelk said.

Target had the biggest decline S&P 500 Index On Wednesday, the company’s shares fell more than 21% to $121.50 in recent trading, while Walmart shares rose 0.5% to $87.06.