E-commerce player Amazon.com Inc.'s
What Happened: Both Amazon and Walmart reported strong fourth-quarter results, exceeding analyst expectations. Amazon's net sales reached $187.8 billion with $1.86 EPS, while Walmart's sales hit $180.55 billion with $0.66 adjusted EPS, both demonstrating growth and outperforming consensus estimates.
Charlie Bilello, the chief market strategist at Creative Planning highlighted in an X post how Amazon's revenue has gradually grown over the years.
From making 77 times lower in quarterly sales as compared to the retail giant Walmart in the year 2000 to exceeding the former in terms of revenue earned in the fourth quarter of fiscal year 2025, Amazon has had a long journey.
- 25 yrs ago: Walmart revenue 77x larger than Amazon
- 15 yrs ago: Walmart revenue 12x larger than Amazon
- 10 yrs ago: Walmart revenue 5x larger than Amazon
- 5 yrs ago: Walmart revenue 2x larger than Amazon Today: Amazon revenue > Walmart revenue $AMZN $WMT
Bezos attributed Amazon's success to a long-term, forward-thinking approach, recognizing that current results reflect decisions made in the years prior. According to him, prioritizing innovation and calculated risks over short-term profits, led to services like Prime and AWS.
Despite early financial losses, Bezos' commitment to "high-quality failures" and continuous experimentation paved the way for Amazon's current dominance across multiple sectors.
According to the in-depth fundamental analysis by Benzinga Insights, Amazon.com exhibits higher valuations than its broadline retail industry peers.
- Its price-to-earnings was at 39.16, 1.6x above the industry norm, price-to-book was at 8.03 relative to the industry average by 1.32x, and price-to-sales of 3.64 was 2.09x the industry average.
- Higher P/E, P/B, and P/S ratios significantly exceed industry averages, though its ROE is slightly above average, indicating efficient equity use.
- On the other hand, its EBITDA, gross profit, and revenue growth suggest strong financial performance and growth potential relative to industry competitors.
AMZN remains lower by 3.41% on a year-to-date basis and 1.74% over a year.
Benzinga tracks 43 analysts with an average price target of $264.05 for the stock, reflecting a "buy" rating. Estimates range widely from $207 to $306. Recent ratings from Loop Capital, Citigroup, and Maxim Group average $279.33, suggesting a potential 32.07% upside.