Amazon (AMZN, Financial) has officially surpassed Walmart (WMT, Financial) in total revenue, marking a major milestone 10 years after its market cap first overtook Walmart's in 2015.
At the time, Amazon's revenue was just one-fifth of Walmart's, but the company's diverse business portfolio, including cloud services, advertising, video streaming, and AI, fueled its rapid expansion. While retail remains Amazon's largest segment, cloud computing is growing at a faster pace, with sales up 19% last quarter. Meanwhile, online sales (excluding Whole Foods and third-party services) rose 7% to $75.6 billion. Amazon's stock has significantly outperformed the market.
Since 2015, shares have delivered a price performance for over 1,100%, compared to Walmart's 250% gain. Truist Securities remains bullish on Amazon's long-term potential, citing its e-commerce, cloud, advertising, and logistics strength. Despite trimming its price target from $270 to $265, analyst Youssef Squali still sees Amazon as undervalued, calling it a compelling investment opportunity.
