Today on TheStreet I found in an article, that Shares of Walmart were falling in mid-afternoon trading on Thursday as the discount retailer said it was recalling 46,300 China-made tripod stools due to a fall hazard. Well, generally I like TheStreet website a lot and I find it really useful to track what’s going on, but reading today’s article made me wondering about quality of some articles…

Well, 46,300 multiplied by $6 is around $277,800. Does anyone really think that it can make fundamentally even a $0,01 difference for share price? Even assume marketing damages and potential penalties if somebody will be hurt… impossible. Just some unjustified negative hype…

Look, market is down by 0.6% now, and WMT is down 1.2% – well it can happen that WMT is performing worse than market, but do investors really need an explanation to every single move? I am wondering that people want to explain every single share price move, whereas there are so many factors (including random walk), that it is impossible!

Obviously there might be people who will claim that: OK it is not about Tripod Stools being Recalled, but due to potential $1b investment in Flipkart, I think it is way too much and that is why shares are falling. Well, it is an interesting point of view. WMT is investing heavily in new technologies/e-commerce to compete with Amazon. It is hard to say for non insiders whether amounts paid for technology are not too high, but what I think is that competing with Amazon is No. 1 priority and as long as company has enough cash with low interest rates it is good to invest. Moreover management is high quality and I trust them that they will do their best. As a direction I think it is a good strategy to shift to new sales channels and as it comes to execution of strategy I am not competent to appraise it ex-ante (ex-post I will see financial results).

As it comes to WMT – share price is year to date +19%, significantly more than S&P 500. Is it really strange and requires explanation why share price is underperforming S&P 500 on one session by around 0.6%? I don’t think so. It is just random walk. Such articles only make a chaos in clear perception of situation, which in my opinion is getting better.

Disclaimer: long WMT