Amazon (AMZN) outpaced Walmart (WMT) in quarterly revenue for the first time, reporting $187.8 billion in sales for its December-ended fourth quarter—$7 billion more than Walmart’s $180.6 billion in revenue for its January-ended quarter. While the results align with analysts’ expectations, they highlight the ongoing competition between the two retail giants for consumer spending.
Walmart’s Q4 revenue grew 4.1%, continuing its streak as one of the largest companies by revenue globally. The retail behemoth has held the top spot on the Fortune 500 since 2014 and is set to retain that position for 2024, with total sales of $680.99 billion, ahead of Amazon’s $637.96 billion.
Though Amazon’s quarterly revenue exceeded Walmart’s for the first time, it is important to note that Amazon’s Q4 includes more of the early holiday shopping period, compared to Walmart’s November to January timeline. Despite this, the figures mark a significant shift in the competitive landscape.
Looking ahead, the race continues. Walmart’s e-commerce business is rapidly growing and aims to capture more of the U.S. market, still largely dominated by Amazon. However, the companies remain distinct: Amazon relies heavily on its massive cloud computing arm, while Walmart boasts the world’s largest network of physical stores.
Analysts expect Amazon to report full-year sales of $700.8 billion, according to FactSet, while Walmart’s projections for its current fiscal year stand at $708.7 billion. These figures may shift following Walmart’s Thursday earnings report.
Stock Market Response: Amazon Shares Slide
Despite the milestone, Amazon’s stock slipped more than 1.5% to close at $222.88, reflecting investor concerns. Amazon’s shares have fallen 7% from a high of $242.52 earlier in the month, largely due to a lighter-than-expected sales and profit outlook for the current quarter, reported alongside the Q4 earnings.
Amazon also dipped below its 50-day moving average on Tuesday, signaling continued downward momentum. Meanwhile, Walmart’s stock took a more significant hit, losing over 6.5% following its soft guidance on consumer spending, which may indicate broader challenges for the retail sector.
