Episode summary
Walmart Boosts Outlook While Warning That Higher Costs Loom | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Scarlet Fu · Guests: Jennifer Bartashus, Kunjan Sobhani, John Butler, Matt Henriksson
Summary
Walmart’s quarter was framed as another sign that the retailer is winning share through a mix of value, convenience and a more tech-heavy e-commerce strategy. A guest said Walmart is drawing in higher-income shoppers too, helped by broader digital offerings and marketplace expansion, and that the company is using those touchpoints to build customer loyalty before the macro backdrop improves. The guest also said Walmart’s move to Nasdaq reflects both its tech-forward image and a desire to align more closely with peers like Amazon, while its read on the consumer remains cautiously optimistic heading into the holidays.
Nvidia’s results were described as one of the most bullish reports the name has delivered in a while, with the guest saying the company’s guidance and long-term demand signals pointed to upside versus Street expectations. The guest said gaming is now too small to matter much in assessing the report, while rising supply commitments and inventory were presented as preparation for the next wave of demand. On China, the guest said Nvidia is not assuming revenues from that market because geopolitics have effectively shut it down for American GPU providers.
Verizon’s announced layoffs were presented as part of a broader turnaround under new CEO Dan Schulman, who is trying to make the company leaner and more aggressive on pricing. The guest said the cuts should free up room to fight harder in a saturated wireless market without sacrificing the dividend, though investors are watching whether competition worsens. The show also covered Abbott’s $21 billion deal for Exact Sciences, which a medtech analyst called strategically sensible because it adds faster growth and better margins.
Key takeaways
- Walmart’s guest said the retailer is gaining from value-seeking consumers and convenience investments that are lifting e-commerce.
- The guest said Walmart’s Nasdaq transfer is partly about perception, but also about improving its profile as a tech-forward company.
- Nvidia’s guest said the quarter was exceptionally bullish and that the company’s half-trillion-dollar pipeline looks conservative if execution continues.
- The guest said China is effectively absent from Nvidia’s demand assumptions because geopolitical issues have shut down the market.
- Verizon’s guest said Dan Schulman is cutting costs to fund more aggressive pricing, even if that risks margin pressure.
- Abbott’s deal for Exact Sciences was presented as accretive because it adds higher growth and stronger gross margins.
Notable quotes
“Walmart had another good quarter”
“the more people are integrated with e-commerce in going to stores, they become sticky and they become loyal customers”
“this was one of the more bullish earnings we have seen from this name in a while”
“They still don't assume any revenues when it comes to data center AI China GPUs or the H20s being shipped into”
“I believe Shman is really he's been on the board for years. I think he's looked at the organization and believes it's a little too heavy, little too bureaucratic”
How the episode opens
Bloomberg Audio Studios podcasts radio news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m.
Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. One of the names uh companies that reported numbers was Walmart.
Came out with some pretty darn good numbers in the stock market. likes it likes it. Stock is up 5.7% today.
It's up about 18% uh year to date. Let's check in with Jen Bartash. She covers all the retailers uh for Bloomberg Intelligence.
So Jen, what did you hear from Walmart with their earnings release? Yeah, it's it you know Walmart had another good quarter. Um, and I think that it's very easy to attribute a lot of their success to just the the value seeeking behavior of consumers in this environment.
But I think that would also be overlooking a lot of the investments they've made in things like convenience. Um, that is really spurring the e-commerce growth and that was really a notable takeaway from today's earnings release. Yeah.
Um, they that e-commerce aspect helps draw in higher income shoppers. So, it's a larger pool of customers that Walmart now has access to. And in our Bloomberg News reporting, we indicate that the digital offerings now include luxury items like pre-owned Chanel bags.
I had no idea that that kind of stuff was available on walmart.com. Well, you know, Walmart has done a lot to really expand its marketplace. Um, and that includes bringing in items that, you know, will appeal to that higher income consumer.
Uh, you know, and the tactic behind all of this is that the more people are integrated with e-commerce in going to stores, they become sticky and they become loyal customers.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- walmart earnings outlook
- rising costs retail
- nvidia earnings ai demand
- verizon layoffs telecom turnaround
- abbott exact sciences acquisition
Companies and tickers mentioned
- WMT
- NVDA
- VZ
- ABT
- Walmart Inc.
- Nvidia
- Verizon Communications Inc.
- Abbott Laboratories
- Exact Sciences Corp.
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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