With the holiday shopping season on the horizon, consumers are gearing up for their purchases. Companies like Amazon AMZN and Walmart WMT are poised to gain significantly from this year’s shopping frenzy, largely due to their strong digital platforms.
Let’s delve deeper into each company’s performance.
Amazon Optimistic About Holiday Sales
Amazon’s recent quarterly report showed impressive results, surpassing predictions for both earnings per share (EPS) and sales. EPS soared by 70% compared to last year, while sales reached $60 billion, marking an 11% increase from the previous year.
A notable aspect of these results was Amazon Web Services (AWS), which saw a 19% year-over-year rise in sales, totaling $27.5 billion. This growth mirrored the previous quarter’s results but slightly missed analysts’ expectations.
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Looking ahead, Amazon is optimistic about the upcoming holiday season, promoting its largest-ever Prime Big Deal Days alongside a newly launched Kindle lineup that has exceeded early projections.
Online sales also exceeded expectations, hitting $61.4 billion, a 3.3% increase, breaking a streak of disappointing results in this area.
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The company’s earnings outlook is promising, reflected in its favorable Zacks Rank #2 (Buy), supported by recent positive earnings estimate changes.
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Walmart’s Strong Digital Performance
Walmart’s recent quarterly results delighted investors, highlighting the effectiveness of its digital strategies. Adjusted EPS rose by 14%, and sales increased by 5.5%, continuing the company’s growth pattern.
Analysts are now optimistic about Walmart’s future, with the $2.47 Zacks Consensus EPS estimate rising by 6% year-over-year, indicating a potential 12% growth for the current year.
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Importantly, global eCommerce sales surged by 27%, with all segments showing higher penetration, reinforcing Walmart’s growing digital momentum. Innovations like store-fulfilled pickup and delivery have attracted more consumers to the service.
Below is a chart detailing the company’s quarterly sales performance.
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Following the report, Walmart raised its fiscal 2025 net sales and operating income projections, contributing to a positive reaction in its stock price.
Conclusion
The holiday shopping season is fast approaching, and companies are ready to leverage their digital and in-store strategies to attract consumers. Amazon AMZN and Walmart WMT are well-positioned to benefit from this surge in holiday spending.
Throughout the years, Amazon has solidified its presence as a leader in e-commerce, thriving during holidays. Meanwhile, Walmart has rapidly enhanced its digital capabilities, also seeing growth as shoppers shift towards more cost-effective options.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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