1 Stock to Buy, 1 Stock to Sell This Week: Alibaba, Walmart

From Yahoo Finance: 2025-05-11 13:46:00

U.S.-China trade talks, CPI inflation, and retail sales will be in focus this week. Alibaba is a buy with strong earnings, guidance beat on deck. Walmart is a sell with disappointing profit growth, outlook expected. U.S. stocks ended the week quietly amid trade talk anticipation. Dow fell 0.2%, S&P 500 dipped 0.5%, and Nasdaq shed 0.3%.

Investors await U.S.-China talks, economic outlook, and earnings reports. Tuesday’s CPI report forecasts a 2.4% rise in April. Fed Monitor Tool suggests an 85% chance of unchanged rates in June. Earnings roll in from Walmart, Cisco, and Alibaba. Alibaba emerges as a strong buy with optimistic growth potential.

Alibaba is anticipated to report a 24% increase in adjusted profit. Revenue expected to climb 8% year-over-year. Alibaba’s cloud business drives momentum with triple-digit growth. Positive outlook fueled by AI advancements and trade talk progress. Alibaba stock surged 47.8% YTD with strong financial health.

Walmart faces a challenging outlook with expected earnings decline. Analysts show growing pessimism with profit estimates cut. Options trading suggests a 6% post-earnings price move. Walmart’s near-term upside limited by macroeconomic pressures and changing consumer behavior. Approach Walmart stock with caution this week.

Walmart expected to report a 3.3% EPS decline to $0.58, with revenue of $164.5 billion. Changing consumer spending patterns pose challenges for Walmart. Stock closed at $96.72 on Friday. Fair Value models indicate potential downside risks. Stay informed with InvestingPro for market insights and risk management.



Read more at Yahoo Finance: 1 Stock to Buy, 1 Stock to Sell This Week: Alibaba, Walmart