Reddit’s Loudest Walmart Critics Have a Point About That 46x Multiple

The world’s biggest retailer, Walmart (NYSE:WMT | WMT Price Prediction) has shed 4.1% over the past month, sitting at $123.49 as of March 11, and retail investors on Reddit are not staying quiet. Social sentiment has swung decisively bearish, with scores clustering between 18 and 32 over the past week after briefly touching 72 (bullish) around the February earnings release. Walmart beat Q4 estimates on both earnings and revenue, but its stock still fell after guidance disappointed.

The Earnings Paradox Fueling Bearish Reddit Chatter

Walmart posted Q4 adjusted EPS of $0.74, beating the $0.73 estimate, and revenue of $190.7B, topping estimates by 3.6%. The business is genuinely evolving: eCommerce now represents 23% of Walmart U.S. net sales, the global advertising business hit nearly $6.4B, and store-fulfilled expedited delivery grew more than 60%. CEO John Furner called the moment transformational: “The pace of change in retail is accelerating. It’s exciting. And our financial results show that we’re not only embracing this change, we’re leading it.”

But FY27 guidance called for net sales growth of only 3.5% to 4.5%, missing the ~5% Wall Street expected. That miss, combined with a trailing P/E of roughly 46x, is what set Reddit ablaze.

Walmart’s Valuation at 46x Is the Heart of the Debate

The most viral thread, “Walmart’s ($WMT) Valuation Still Doesn’t Make Any Fucking Sense” on r/wallstreetbets, drew 339 upvotes and 152 comments. The author’s central argument: “Walmart is Schrödinger’s stock: somehow both a bond proxy defensive that deserves a dirt-cheap discount rate and a hyper-growth monster that deserves a nosebleed multiple.”

Walmart’s ($WMT) Valuation Still Doesn’t Make Any Fucking Sense
by u/ini0n in wallstreetbets

An earlier thread, “Someone fucking explain why Walmart ($WMT) is at 47x earnings?” pulled 1,471 upvotes and 518 comments, comparing Walmart unfavorably to Coca-Cola: “similar growth, better brand, international growth potential and a 25x PE.” The bearish case rests on three pillars:

• Q4 net income fell 19% year-over-year, even as revenue grew, raising questions about whether margin expansion is real or temporary
• Profit margin sits at just 4.8% on $713B in trailing revenue, a thin cushion for a stock priced like a growth company
• FY27 guidance implies decelerating top-line growth at a moment when the multiple demands are accelerating

What Investors Are Actually Watching Now

Something to note is that the bull case has merit, as analysts are overwhelmingly bullish, with 39 buy or strong-buy ratings versus just 1 sell, and a consensus price target of $135.90, implying roughly 10% upside from current levels. The r/investing community has been more measured, debating whether Walmart’s gains among upper-income customers and its advertising flywheel justify the premium.

Tariff exposure is the most immediate pressure point. One Reddit post flagged a “150-day tariff clock” with implications for July. With $26.6B in capital expenditures already weighing on free cash flow, any trade policy cost pressure could make the current multiple harder to defend.