Amazon is showing strong operating leverage in its e-commerce business, while Walmart is positioned as a defensive retailer due to its role as the largest grocer in the U.S. Walmart’s stock outperformed Amazon’s in 2025, but Amazon is the cheaper stock. Amazon’s use of AI and robotics is driving growth and efficiency, leading to strong operating leverage. It also operates the largest cloud computing company, AWS. Walmart has focused on groceries and necessities, becoming a consumer staples stalwart. It has also ventured into e-commerce with Walmart+, offering perks like free same-day delivery. Amazon is seen as the faster-growing and cheaper stock, with added growth potential from AWS. It is considered a strong rebound candidate in 2026 and may outperform Walmart next year.

Read more at Nasdaq: Amazon vs. Walmart: Which Stock Will Outperform in 2026?