Amazon Continues to Outpace Walmart, Driving Stock Performance
Market Cap and Revenue Milestones
In 2015, Amazon's market capitalization surpassed Walmart's. However, it took nearly a decade for Amazon's revenue to follow suit. In Q2 2015, despite its expansion into cloud services and streaming, Amazon's revenue stood at $23.2 billion, approximately one-fifth of Walmart's.
Recent Financial Performance
In the fourth quarter of 2023, Amazon reported sales of $187.8 billion, a 10% increase. Walmart's revenue is projected to rise 4% to $180 billion, with its earnings announcement scheduled for February 20th.
Profitability and Diversification
Amazon's profitability initially proved inconsistent. However, it surpassed Walmart in profit for the first time in 2017 and has frequently outperformed it since, notably in the past 18 months.
Amazon's diversification strategy has been crucial to its success. Beyond retail, the company has expanded into cloud computing, healthcare, and streaming services. Notably, its AI aspirations continue to fuel growth and differentiate it from competitors.
Retail Dominance
Despite its diversification efforts, retail remains Amazon's primary revenue driver. Online sales, excluding Whole Foods and third-party services, grew 7% to $75.6 billion in the most recent quarter.
Investor Returns
Since Amazon's market cap surpassed Walmart's in 2015, investors have witnessed a significant return on investment. Amazon's stock has surged by 802% compared to Walmart's 331%.