Source: Fortune
Summary
Amazon has surpassed Walmart as the largest U.S. company by revenue, with $716.9 billion in Q4 earnings, compared to Walmart’s $713.2 billion. This marks the first time Walmart has been eclipsed in 13 years. However, Walmart’s revenue and market cap are at all-time highs, and the company has proven itself a worthy competitor to Amazon. The rivalry between the two companies has driven innovation and growth, with both CEOs, Andy Jassy and Doug Furner, focusing on areas beyond retail and e-commerce, such as AI, streaming, and media services.
Our Reading
The numbers tell one story. Amazon’s rise has put Walmart back on the path of growth and relevance. Walmart’s online business grew 27% last quarter, and it beats Amazon in grocery delivery. The battle between the two companies is just getting started, with both CEOs driving innovation and growth in various realms.
One irony of Amazon’s rise is that it has ultimately made Walmart a stronger, more modern company. The fear of having Amazon eat its lunch woke Walmart up. Now, both companies will be competing in areas beyond retail and e-commerce.
The strategy enters a familiar phase. Walmart’s reinvention under former CEO Doug McMillon and new CEO Doug Furner has made the company a place where failure is tolerated as long as it leads to innovation. Amazon CEO Andy Jassy continues founder Jeff Bezos’ practice of constantly innovating and dropping businesses that don’t work.
Amazon’s ascent posed an existential threat to Walmart, but it ultimately made Walmart a more tech-forward retailer.
Walmart’s revenue and market cap are at all-time highs, and it has proved itself a worthy competitor.
Author: Evan Null
