Cramer says Walmart is an ‘inflation fighter’, Wall Street shouldn’t sell

CNBC’s Jim Cramer said Tuesday that Walmart shares should not be lower – calling the move a Wall Street problem and not an indication of something wrong with the retail giant’s quarterly results.

Walmart shares opened down more than 1% and slipped further on the idea that the company had not raised prices enough in the third quarter, resulting in disappointing gross margins.

Cramer dismissed this premise on “Squawk Box” and “Squawk on the Street,” as well as in his early morning Investing Club newsletter, claiming that Walmart is an “inflation fighter” and “stock taker”.

He praised the retailer for trying to largely absorb the increased costs due to product shortages and delays and not pass them on to consumers.

“Walmart is aggressively keeping prices down and therefore their gross margins are going down. But they’re taking everyone’s shares,” Cramer said. “Now is the time to take shares during the inflationary period.” He added: “I like to split against them, lower the prices and worry about the gross margin.”

Tuesday’s drop pushed Walmart stock down slightly since the start of the year.

Walmart won back price-conscious grocery shoppers in the quarter as it used its size to help manage aggressive supply chains. The company on Tuesday reported adjusted third-quarter earnings per share and higher than expected revenue. It also boosted profit forecasts for the entire year.

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