Shares of retail giant Walmart WMT.O fell as much as 9.86% to a near nine-month low of $103.03, losing almost $90 billion in valuation.
If losses persist, the stock is on track for its worst day since May 2022.
The company missed Q2 sales estimates for the first time in at least five years as inflation and higher gas prices tightened budgets.
Q2 U.S. same-store sales growth was 2.6%, missing expectations of 3.8%, according to data compiled by LSEG.
Walmart reported Q2 adjusted EPS of 81 cents, topping estimates of 74 cents.
The company also slightly raised its annual forecasts.
UBS analysts said the stock falling is a "good opportunity" as expectations are now rebased.
RBC Capital Markets said investors will question the valuation with Walmart US growth rate, although it argued this is a broader macro dynamic and not indicative of WMT share gains moderating.
Shares of other retailers also weakened, with Kroger down about 1%, Costco and Albertsons down 2% each, Dollar Tree down about 1%, and Ross Stores and TJX down about 3% each.
Year to date through the last close, the S&P 500 Consumer Discretionary Distribution & Retail Index .SPXRT was down 8.3%, while WMT was up about 3%.
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