Walmart vs. Amazon: The WMT Vs. AMZN Stock Showdown

Main points

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Amazon has nearly 40% of the online retail market and Walmart has more than 10,500 brick-and-mortar stores.
Some think Amazon is currently undervalued, which could make it a good buy. But others think a protracted recession could be just what Walmart needs to compete with Amazon in a big way

On the surface, Walmart has higher revenue. However, Amazon is growing sales faster on a year-over-year basis.
While both companies cater to the needs of millions of shoppers each year, there are many differences that set these companies apart in the eyes of the stock market. Let's take a closer look at Amazon and Walmart stock to better understand how these two mega-companies will stack up against each other in 2022.

Amazon vs. Walmart: How do these stocks compare?

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As a shopper, you've probably shopped at one or both of these stores recently. That's not surprising when you consider that Amazon has nearly 40% of the online retail market and Walmart has more than 10,500 brick-and-mortar flagship stores.

It is clear that both of these companies are major players in the retail industry. But when it comes to the stock market, which company comes out on top?

Walmart vs. Amazon: Share price snapshot

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For starters, let's look at current stock prices.

The 52-week high was $160.77, while the low was $117.27. As with most stock markets, WMT has had quite a bumpy year. WMT is currently down 8.43% YTD.

On the other side of the chart, Amazon's stock price stands at $127.69. Amazon's stock price has seen even more volatility this year, with a 52-week high of $188.11 and a low of $101.26. YTD, AMZN is down 25.13%.

But these numbers only scratch the surface. See the sections below for more details that provide an overview of these stock prices.

Walmart vs. Amazon: Sales

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In the quarter ending June 30, 2022, Amazon reported $121.234 billion in revenue. This undeniably impressive number represents a 7.21% year-over-year increase. But that pales in comparison to Amazon's 12-month revenue of $485.902 billion when counting backward from June 2022. Annual sales indicate a year-on-year increase of 9.61%.

Walmart posted even more impressive numbers. Revenue for the quarter ended July 31, 2022 was $152.859 billion, up 8.37% year over year. When considering the previous 12 months, Walmarts sales were $587.823 billion. While these earnings are impressive, they represent only 3.83% year-over-year revenue growth.

On the surface, Walmart has higher revenue. However, Amazon is growing sales faster on a year-over-year basis. If the momentum continues, Amazon could eventually grow its revenue beyond Walmart.

Walmart vs. Amazon: Net income

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The yield is important. But at the end of the day, the net income of the business is where the money is made.

Walmart had a net income of $5.149 billion for the quarter ending July 31, 2022, up 20.42% year over year. This represents a slight year-on-year increase of 1.21%.

On the other side of the coin, Amazon reported negative net income for the quarter that ended June 30, 2022. The company lost 2.028 billion, indicating a year-over-year decline of 126.07%.

However, the picture is rosier when you look at the last 12 months. During that time, Amazon's net income was $11.607 billion. While this still represents a year-over-year decline of 60.57%, the company is still profitable.

Bottom Line

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While the retail giants are struggling, you can choose to put their stocks to work for you in your investment portfolio. Q.ai artificial intelligence searches the markets for the best investments for all kinds of risk tolerances and economic situations. They then combine them into practical investment kits that make investing simple and – dare we say it – fun.

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Warm regards,
@Winy

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