Amazon set to pass Walmart in revenue for first time

Key Points

  • Amazon is expected to surpass Walmart in quarterly revenue for the first time, with projections of $187 billion against Walmart's $180 billion.
  • Walmart has been the top revenue generator for the past 12 years, but Amazon's growth, particularly in its cloud business, AWS, has been significant.

Summary

Amazon is on the brink of overtaking Walmart in a key financial metric: quarterly revenue. While Walmart has long held the title of the world's biggest retailer by revenue, Amazon's growth, especially in its cloud computing arm, Amazon Web Services (AWS), has propelled it forward. Analysts predict that Amazon will report $187 billion in revenue for the latest quarter, compared to Walmart's expected $180 billion. This shift marks a significant milestone for Amazon, which has already surpassed Walmart in market capitalization years ago. The growth in Amazon's revenue can be attributed to the expansion of AWS, which now accounts for about 17% of its total sales, and a surge in online shopping due to the Covid-19 pandemic. Despite this, Walmart's annual sales remain formidable, with projections for the latest fiscal year reaching nearly $681 billion. Meanwhile, other companies like Apple and UnitedHealth have also joined the elite group of companies with quarterly revenues exceeding $100 billion, highlighting the competitive landscape of retail and technology sectors.

cnbc
February 6, 2025
Stocks
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