Walmart’s U.S. comparable sales growth hits 6-year low

Alibaba's shares fell 6.7% after reporting a 75% drop in quarterly profit due to heavy AI spending. Revenue grew 9% to $39.64B, but capital expenditures surged 75% to $10B. Cloud revenue rose 45%, while e-commerce revenue declined. CEO Eddie Wu assured investors of AI's long-term benefits.

The US Court of Appeals vacated the DOT's order to unwind the Delta Aeroméxico joint venture, calling the DOT's analysis arbitrary. The alliance retains antitrust immunity. The court did not rule on competition but on the DOT's process. Delta and Aeroméxico control ~60% of Mexico City-US operations. Walmart froze prices on 4,000+ products in Mexico for 90 days, potentially impacting inflation. Separately, Mexico's workweek will reduce to 46 hours by 2030, increasing employer costs.

Walmart shares dropped 9% on Thursday, the worst single-day decline in four years, after weak guidance and same-store sales miss. JPMorgan maintains an overweight rating, lowering its price target to $125 from $137, citing long-term growth potential and alternative profit pools. 40 of 44 analysts rate the stock buy or strong buy.

Walmart reported its first comparable-sales loss in six years, falling 9% in trading. The company attributed the decline to temporary pricing pressure in its pharmacy business. Other retailers like Home Depot, Lowe's, and TJX also reported weak demand. July retail sales unexpectedly declined 0.6%, and consumer sentiment decreased. The US lost 23,000 jobs in July, missing forecasts. These signs may impact Fed rate decisions and inflation control efforts.

AWS is investing $1B to embed AI specialists in customer teams, accelerating AI deployment from months to days. The initiative, AWS Forward Deployed Engineering (FDE), focuses on building and deploying AI systems with limited human intervention. AWS claims this approach differs from traditional consultancy, emphasizing business results over billable hours. The company has already partnered with organizations like the NFL, Cox Automotive, and Southwest Airlines. AWS aims to target companies in re

Walmart reported Q2 FY27 advertising revenue growth of 20% YoY, driven by Flipkart ads. International net sales rose 12.8% to $35.2B, with India and China leading operating income growth of 16.6%. E-commerce sales increased 19%, led by Flipkart. Walmart acquired Vibe.co to expand its ad business. Flipkart's Big Billion Days sale shift to Q4 may impact Q3 growth by 100bps.