Walmart and Amazon Show Diverging Fortunes
Walmart (NASDAQ: WMT) reported a revenue growth of 4.9% in Q4 and 5.1% for the full year, alongside a notable 24% increase in e-commerce sales. The retailer’s stock valuation surpassed $1 trillion this month, driven by its ability to attract middle-class consumers amidst economic uncertainty. In contrast, Amazon (NASDAQ: AMZN) announced a substantial $200 billion capital expenditure for 2026 while reporting a 24% growth in AWS revenue, but saw its stocks decline due to concerns over return on investment.
Comparatively, Walmart’s earnings per share (EPS) grew by 13.3% with a free cash flow of $14.9 billion, reflecting strong operational performance. Conversely, Amazon’s e-commerce growth stood at 12% for Q4, lagging behind Walmart, while its advertising business also showed promise. Despite investment concerns, Amazon’s stock trades at approximately 26 times forward earnings estimates, presenting a more attractive valuation compared to Walmart’s 45 times earnings multiple.
