Walmart (WMT  ) shares saw their largest day-over-day drop since May on Tuesday, Nov. 16, after reporting less than impressive gross margins in the third quarter. However, that reduced share price might have less to do with the company's financial state than with Wall Street's fears, according to CNBC's Jim Cramer.

Increased supply costs have been felt across the globe, and companies have raised the prices paid by consumers in order to attempt to offset that higher cost. Walmart, on the other hand, chose to keep its price increases relatively modest.

On Tuesday, the company reported that its gross margins declined 42 basis points in the third quarter. Share prices fell largely due of the belief amongst traders that the company should have raised prices more significantly.

However, Cramer argued that the keeping prices at a more reasonable level was a good move for Walmart.

"Walmart is keeping prices down aggressively and therefore their gross margins are down. But they are taking share from everybody. This is the moment to take share during the inflationary period," Cramer said. "I like share versus them cutting price and worrying about gross margin."

Cramer defended Walmart on "Squawk Box" and "Squawk on the Street". Writing in his morning Investing Club newsletter, Cramer called the company an "inflation fighter" and "share taker".

Walmart's Chief Financial Officer said much the same in an interview with CNBC regarding the company's current position.

"We've always been an inflation fighter for customers," CFO Brett Biggs said. "Our scale and the product breadth that we have allows us to do things in a way that is beneficial to customers and beneficial to shareholders."

Walmart has managed to harness its size in order to fight supply chain issues: by negotiating with suppliers and using its own chartered ships for transport, Walmart has avoided some of the obstacles holding up other retailers. According to company executives, inventory in the U.S. is up by nearly 12%. These efforts have also helped Walmart keep prices low, allowing the company to retain price-conscious shoppers

In the company's Tuesday earnings report, Walmart raised its forecasted end-of-year adjusted earnings per share from between $6.20 and $6.35 to $6.40.