Amazon Surpasses Walmart to Become World's Largest Company
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy AMZN?
Source: Fool
- Sales Milestone: Amazon achieved nearly $717 billion in revenue for 2025, surpassing Walmart to become the world's largest company by sales, marking a significant shift in retail leadership.
- Sustained Growth: Despite its massive size, Amazon continues to report double-digit sales growth, with online store sales up 10% year-over-year, advertising sales up 23%, and AWS sales up 24%, showcasing the strength of its diversified business model.
- Strategic Shift: Amazon has closed all its Amazon Go and Amazon Fresh stores while planning a new big-box store format that combines retail and distribution, aiming to optimize its physical store presence to meet market demands.
- Competitive Outlook: Walmart is set to report its fiscal fourth-quarter results next week, and to catch up with Amazon, it would need an additional $14 billion in revenue; given its recent sales growth, the competitive outlook appears bleak, further solidifying Amazon's market position.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 199.600
Low
250.00
Averages
294.69
High
340.00
Current: 199.600
Low
250.00
Averages
294.69
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Financial Results: Despite narrowly missing earnings expectations, Amazon reported a 14% year-over-year revenue increase to $213 billion in Q4, driven by robust growth in advertising and cloud computing, highlighting the company's competitive position in rapidly growing markets.
- Capital Expenditure Plans: Amazon plans to increase capital expenditures to $200 billion by 2026, a 56% rise from $128 billion in 2025, raising investor concerns about the company's financial health, particularly regarding its significant investments in AI infrastructure.
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See More
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See More
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- Growing Backlogs: Alphabet's backlog reached $240 billion, up 55% sequentially, while Amazon's backlog grew to $244 billion, a 22% increase, indicating strong market demand for AI products for both companies.
- Market Reaction: Despite the significant investment potential in cloud computing and AI, the market reacted negatively to both companies' spending plans, leading to stock price declines and presenting long-term investors with an opportunity to buy at a discount.
See More
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See More
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- Cash Flow Status: Alphabet generated $165 billion in operating cash flow in 2025 and is expected to maintain positive free cash flow despite increased spending, whereas Amazon's operating cash flow of $140 billion is not growing as fast, risking negative cash flow.
- Backlog Growth: Alphabet's backlog reached $240 billion, up 55% sequentially, indicating strong demand for AI products; Amazon's backlog also grew by 22% to $244 billion, reflecting robust market demand in the cloud computing sector for both companies.
- Market Reaction: Despite the significant investment potential in AI, the market reacted negatively to both companies' spending plans, leading to stock price declines, which may present buying opportunities for long-term investors considering their strong competitive positions in high-return areas.
See More
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- Financial Performance Analysis: These companies report strong revenue growth in their financial statements; however, market uncertainties could impact future profitability, necessitating investor attention to shifts in macroeconomic indicators.
- Investor Strategy Adjustments: In light of market risks, investors may need to reassess their portfolios, considering a more balanced allocation between tech stocks and other sectors to mitigate potential losses.
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See More
