Amazon Surpasses Walmart's Revenue for the First Time

Amazon overtakes Walmart's quarterly revenue in Q4 2024, signaling a shift in retail leadership. This changing dynamic may further influence investor sentiment and stock prices moving forward.

Date: 07-03-2025

AI Rating: 7

Impact on Earnings
Although specific Earnings Per Share (EPS) figures are not provided, the significant growth of Amazon’s revenue and its leadership in certain growth sectors (third-party sales, advertising, AWS) suggest a positive trajectory for EPS moving forward. This momentum could attract investors to Amazon stock.

Revenue Growth
Amazon's fourth-quarter net sales reached $188 billion, while Walmart's were at $181 billion. Although Walmart led for the full year with revenue of $681 billion compared to Amazon's $638 billion, Amazon's growth appears substantially higher, with potential for it to surpass Walmart in the upcoming year.

A hallmark of Amazon’s success comes from its third-party sales segment, generating $47 billion in the fourth quarter—a 9% year-over-year increase. Additionally, advertisement revenues at $17 billion grew by 18%, showing Amazon's capacity for rapid expansion within new business lines. AWS's growth of 19% also signifies strong performance.

Net Income & Profit Margins
Details regarding Net Income or specific profit margins were not disclosed in the report. However, the mention of a higher-margin digital advertising revenue stream for Walmart indicates Walmart's intention to bolster profitability while facing thinner margins in traditional retail.

Free Cash Flow (FCF)
FCF information is missing from the text, limiting the analysis to revenue growth and profit discussion rather than cash flow generation.

Return on Equity (ROE)
No ROE data was presented, so investors cannot assess profitability relative to equity in this report.

Overall, while specific financial metrics like EPS, net income, and FCF are absent, Amazon's strong sales performance and growth in multiple business areas create a positive outlook for stock performance. In contrast, Walmart's modest growth projections for 2025 may temper some investor enthusiasm. Hence, Amazon likely offers a more favorable investment opportunity at this time.

Stocks: AMZN WMT