In its latest reported quarter, the Nasdaq-listed firm reported a 45% increase in its U.S. government revenue while its commercial revenue went up an even bigger 71% on a year-over-year basis.

Investors aren’t buying it. Target’s stock dropped 5% the day of the earnings release and is now down 64% from a November 2021 all-time high of $266.39.

Many U.S. shoppers know Target as a place to get everyday items like groceries and paper towels, as well as clothes and homegoods. But recently some shoppers have stopped buying things at Target ...