Comparison of Amazon and Walmart stock performance in 2024, suggesting Amazon may be better buy for 2025.

From Nasdaq: 2024-12-23 04:37:00

In 2024, Walmart’s stock has outperformed Amazon’s, with Walmart up nearly 80% and Amazon up about 47% year to date. With 2025 around the corner, let’s see which stock is best positioned to outperform next year.

Walmart has transformed into the largest grocery store in the U.S., accounting for over a quarter of all grocery sales. Its scale, buying power, and physical footprint have enabled it to offer competitive prices and convenience, attracting a wide range of customers.

Walmart’s revenue grew by 5.5% last quarter, with operating income up by 8% and adjusted EPS by 14%. The company’s success is evident in its strong performance across various categories, including in-home tech, toys, and seasonal decor.

Amazon has seen a 9% increase in revenue in its North American retail segment, with a 33% jump in operating income. The company is also experiencing growth in digital advertising and is expanding its presence in the grocery and pharmacy businesses.

Amazon’s AWS cloud computing business saw a revenue increase of 19% last quarter, with operating income soaring 49% to $10.4 billion. The company is leveraging artificial intelligence to drive revenue growth and profitability in various segments, including cloud computing and logistics.

Both Amazon and Walmart have shown adaptability and innovation over the years, positioning them as long-term winners. However, for 2025, given Amazon’s higher revenue growth, AI opportunities, and modest valuation gap, it may be the preferred investment choice.



Read more at Nasdaq: Amazon vs. Walmart: Which Stock Is the Better Buy for 2025?