Amazon Overtakes Walmart in Revenue: A Decade-Long Milestone
After surpassing Walmart in market capitalization nearly 10 years ago, Amazon finally overtakes Walmart in revenue. Julie Hyman from Yahoo Finance breaks down this key financial story.
Key Highlights:
- Milestone Achieved: Amazon's revenue finally surpasses Walmart's after a decade of market cap dominance.
- Historical Context: In 2015, Amazon's revenue was just one-fifth of Walmart's, but Q4 sales now exceed predictions.
- Revenue Growth: Amazon's fourth-quarter sales hit $187.8 billion, a 10% increase.
- Walmart's Growth: Projected to rise 4% to $180 billion (reporting due Feb 20).
- Profitability Shift: Amazon eclipsed Walmart in profit in 2017, consistently outpacing it since.
Amazon's Business Diversification:
Amazon's success is attributed to:
- Cloud services
- Streaming video
- Fancy produce (Whole Foods)
- Ad services
- AI hopes
The Enduring Power of Retail:
Despite the growth in cloud services (AWS sales up 19%), online retail remains a key contributor, rising 7% to $75.6 billion.
Investor Payoff:
Since July 2015, Amazon investors have seen an 802% return, compared to Walmart's 331% and the S&P 500's 193%.
Stock Performance Comparison:
A comparison of stock performance since Amazon's market cap surpassed Walmart's:
| Company | Stock Symbol | Return Since July 2015 |
|---|---|---|
| Amazon | AMZN | 802% |
| Walmart | WMT | 331% |
| S&P 500 | N/A | 193% |
Key Takeaways:
- Investors who bet on Amazon's growth story have been handsomely rewarded.
- Amazon's diverse portfolio, including retail, cloud, and AI, drives its success.
- While new segments like AWS are important, core retail remains a significant revenue source.