Amazon Surpasses Walmart in Sales, Proving Growth Potential Triumphs Size
Despite its smaller revenue in 2015, Amazon's strategic expansion into cloud services, streaming, and AI has propelled it past Walmart's market dominance.
Sales Surpass Revenue:
On February 20, Walmart is expected to report a 4% revenue increase to $180 billion, while Amazon recently announced a 10% jump to $187.8 billion in fourth-quarter sales. Despite Amazon's revenue still trailing Walmart's, the company's focus on growth potential has proven lucrative for investors.
Profit Milestone:
Amazon surpassed Walmart in profitability in 2017 and has consistently outpaced the retail giant in this regard, particularly in the past 18 months.
Sector Diversification:
Amazon's growth strategy has involved diversifying beyond retail into cloud storage, streaming, advertising, and AI. While Amazon Web Services drives innovation and buzz, retail remains the largest revenue generator, with online sales rising 7% to $75.6 billion.
Investor Returns:
Investors who purchased Amazon shares on the day it overtook Walmart's market cap have witnessed an 802% return, far exceeding Walmart's 331%.
Conclusion:
Amazon's success highlights the importance of embracing growth potential over pure size. The company's willingness to explore new sectors and innovate has allowed it to thrive despite its smaller revenue base, proving that growth prospects can be more valuable to investors than established dominance.