Yahoo Finance Amazon vs. Walmart Stock: Which Is a Better Investment?
Walmart is the world’s largest retailer, with over $638 billion in revenue per Statista, and Amazon ranks behind as the second-largest U.S. company, with $554 billion in net sales in 2023. While both companies are good investments and have provided shareholders with value, there are differences when buying stock.
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E-Commerce Sales
Walmart is the leading retail giant, but its e-commerce sales are falling short. Amazon is in a league of its own regarding e-commerce sales. It commands a staggering 37.6% of all U.S. e-commerce sales, leaving Walmart a distant second with a mere 6.4%, Motley Fool reported. This significant gap is a testament to Amazon’s prowess and ability to leverage the growing e-commerce trend, gradually eroding Walmart’s lead in overall retail sales.
Edge: Amazon.
Diverse Revenue Streams
Amazon’s success is not limited to e-commerce. It is strategically capitalizing on its AI investment, which is bolstering its stocks. The company has introduced various generative AI tools that could revolutionize its clients’ operations. This innovative approach attracts a growing list of high-profile customers, indicating years of untapped potential for Amazon.
The tech titan invested $4 billion in Anthropic. “As part of a strategic collaborative agreement, we and Anthropic announced that Anthropic is using Amazon Web Services (AWS) as its primary cloud provider for mission critical workloads, including safety research and future foundation model development,” the company stated in a blog post.
Edge: Amazon.
Growth
It’s undeniable that Amazon is growing faster, with a 14% year-over-year revenue increase in 2023, per Motley Fool; however, Walmart has a strong, loyal network of shoppers who love the company’s discount prices. Currently, Walmart has 10,623 stores worldwide, according to Statista, with low operating margins, and their model is working. “Walmart’s revenue increased 5.7% year over year in its fiscal 2024 (ended Jan.31). That’s on top of a larger base — and while Amazon grew faster for a long time, it can’t seem to quite catch up,” per Motley Fool.
Edge: Walmart.
The Winner: Amazon
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Walmart and Amazon offer investors different incentives and are both solid choices for buying stocks. “Walmart pays a dividend, an attractive feature for passive income investors that Amazon doesn’t offer,” the Motley Fool reported. However, Amazon is also a low-risk investment with a reliable profit, but it has a leading edge with the ground-breaking AI advances the company is moving towards. In addition, Amazon kicked off 2024 strong, and Amazon’s shares reached an all-time high on May 9th, gaining under 1% and closing at 189.50, per Investor’s Business Daily.
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This article originally appeared on GOBankingRates.com: Amazon vs. Walmart Stock: Which Is a Better Investment?
