Call it a changing of the retail guard. Amazon is worth more than Walmart. A lot more.
The online retail giant’s market value is about $255 billion. Walmart (WMT) is worth a little more than $230 billion. Amazon is now the most valuable retailer in the world.
Another stunning stat? Amazon ‘s market value is about five times higher than Target’s (TGT)!
It’s an amazing feat for Amazon — which is still a relatively young company. It just celebrated its 20th anniversary. Walmart has been around since 1962.
Amazon is the undeniable king of e-commerce. Walmart is trying to catch up.
The two went head-to-head (click-to-click?) last week when Amazon offered huge discounts for its Prime members. Walmart countered with rollbacks and “atomic” online deals of its own.
There was a significant social media backlash to Prime Day. Consumers complained about the quality of merchandise that was on sale and the fact that many “Lightning” deals forced people on to waiting lists.
Amazon had the last laugh. The company said that sales on Prime Day did wind up topping Black Friday. And Amazon is expecting to report a jump in new Prime members (who pay $99 annually) in the third quarter.
Walmart obviously needs to do even more digitally to keep pace with Amazon. Investors are clearly willing to pay a premium for companies that are dominant online.
Amazon’s stock is up more than 80% this year and trades at an insane valuation of nearly 200 times 2016 earnings estimates. Walmart’s shares have fallen 15% and trade for just 14 times next year’s profit forecasts.