A stock price decline could also lead to an oil-company stock price drop, which could hurt its business, according to the head of one of the nation’s largest oil companies.
Wal-Mart’s stock price fell to its lowest level in three months Monday, after the company’s shares dropped almost 7% in the last 24 hours.
The stock fell more than 50% in 2017 and last month.
It closed at $28.85 Monday.
It’s the worst decline since the year-ago market peak.
Walmart shares were down almost 8% Monday, a steep decline from the day before.
They fell by nearly 10% in their worst session since October 2017.
That was before the company announced a $1.4 billion deal to buy BG Group for $15.2 billion, which led to the stock falling.
“The market is not going to recover from this, and the stock is going to continue to go down,” Michael Orenstein, head of the energy consulting firm Wood Mackenzie, told CNBC.
“We’ve seen that in the energy sector.”
Wal-mart has been under pressure to cut costs as it’s struggling to respond to the recent hurricanes.
The company recently announced a new program to hire 400 people and a $2.2 million investment to boost its workforce.
The cuts are part of a plan to slash costs and reduce workforce.
Walmarts chief financial officer said the company is “very close to having an earnings release.”