Fast Money Blog- 2/20/26
On Friday morning, stocks rose following the U.S. Supreme Court’s decision that President Trump did not have legal authority to impose sweeping global tariffs under the International Emergency Economic Powers Act (IEEPA).
The court held that the U.S. Constitution gives tariff-setting power to Congress, not the president.
This ruling means that most of the tariffs President Trump has imposed since 2025 are now void, including “reciprocal” tariffs tied to trade imbalances and country-specific “trafficking” tariffs put in place by political disputes or issues like drugs or immigration.
As far as how or when importers will be refunded for tariffs they have already paid, this will likely be settled by lower courts, and companies like Costco have already filed lawsuits. It’s not going to be a fast process, and it’s important to note that more than $175 billion in revenue has been collected under Trump’s now illegal authority.
How this plays out will inevitably affect both the economy and global stock indexes.
In other news, on Thursday, February 19th, Walmart, Inc. (WMT) released its Q4 2026 earnings report with strong top-line revenue of $190.7 billion, up 5.6% year-over-year.
The company pointed out that speedy deliveries from stores are helping Walmart attract more shoppers, particularly those with higher incomes.
For fiscal year 2026, Walmart’s top-line revenue came in at $715.9 billion, up 4.7% from the previous year.
Q4 Highlights
Walmart's global eCommerce sales rose 24% in the quarter year-over-year. This includes a 27% increase in the U.S., where online sales now account for 23% of total sales — the highest level in company history.
Advertising revenue for Q4 climbed 37% globally.
The company’s quarterly global membership fee revenue increased by 15.1% year-over-year.
In terms of their business model, it is important to keep in mind all the ways that Walmart makes its revenue.
its retail locations
its e-commerce platform, which also allows third-party sellers to list products on Walmart.com much like Amazon marketplace
Walmart+, a subscription service similar to Amazon Prime, which includes free unlimited delivery from stores and mobile scan-and-go shopping
Walmart Connect, the company's advertising platform, which has emerged as a significant growth driver. The platform allows brands and suppliers to purchase advertising placements on Walmart.com, in mobile apps, and increasingly through in-store digital displays
Due to today’s Supreme Court decision, economists are predicting a stronger economy for U.S. consumers as well as a decline in prices over the next 6 months.
Lower prices on products usually means higher sales for retailers. Because of this, I believe Walmart stock price is poised to rise 50% - 100% over the next 5 years.
Tyrone Jackson
The Wealthy Investor