From Nasdaq: 2024-04-02 06:20:00

Walmart (NYSE: WMT) and Alibaba (NYSE: BABA) are global retail giants, but Walmart’s stock has surged 85% in the past five years while Alibaba’s has dropped 50%. Walmart’s success is attributed to its strong e-commerce, private label products, and overseas acquisitions. Analysts expect Walmart’s revenue and earnings to grow in fiscal 2025.

Alibaba faced regulatory challenges, fierce competition, economic slowdown, and struggles in its cloud business. Revenue only rose 2% in fiscal 2023, but analysts expect growth in fiscal 2024 and 2025. Despite low forward earnings, Alibaba’s stock looks cheap, and it recently increased its buyback authorization by $25 billion.

Walmart’s solid performance and growth potential make it a better investment choice compared to Alibaba. While Walmart might seem expensive, it remains a safe haven play in turbulent times, whereas Alibaba’s uncertainties make it a riskier investment. Investors should consider the long-term potential and risks associated with both companies before making a decision.



Read more at Nasdaq: Best Stock to Buy: Walmart vs. Alibaba