The reasons for Target’s stock drop

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Why Target’s stock price plummeted

Target stock shed nearly a quarter of its value in just one day, the biggest one-day decline since Black Monday in 1987.

This comes after the company reported earnings much weaker than expected for last quarter. Target CEO Brian Cornell said inflation is largely to blame.

“Overall costs have been rising much faster than retail prices,” he said on Wednesday’s pre-market earnings call. “While it’s always the last lever we pull, external conditions led us to raise prices across a broad set of items in multiple categories.”

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