Amazon vs. Walmart: A Battle of Growth and Logistics
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Logistics Advantage: Walmart's network of over 10,000 retail stores acts as shipping centers, enabling same-day delivery and free shipping, significantly enhancing customer experience and solidifying market position.
- Growth Rate: Amazon's online sales grew by 10% year-over-year, compared to Walmart's 5.8%, indicating Amazon's superior overall revenue growth and potential for greater market share in the future.
- Diversified Revenue: Amazon's exposure to cloud computing and online advertising contributes to higher profit margins, with AWS revenue surging 20% year-over-year, while Walmart's ad revenue accounts for less than 1% of total sales.
- Future Outlook: Although Walmart has excelled over the past five years, Amazon is expected to deliver higher returns for investors in 2026, showcasing its competitive potential in the market.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.71 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
43 Analyst Rating
40 Buy
3 Hold
0 Sell
Strong Buy
Current: 238.180
Low
250.00
Averages
294.71
High
340.00
Current: 238.180
Low
250.00
Averages
294.71
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.
