In this video, I will be comparing Amazon (AMZN +2.16%) to Walmart (WMT +0.83%) to evaluate which one is the more investable option right now.
- Walmart in its latest quarter reported revenue of $152.86 billion, up 8.4% year-over-year (YOY), compared to Amazon's 7% increase to $121.2 billion.
- Earnings per share came in at $1.77, down 0.6% YOY.
- Walmart's net income for the quarter rose to $5.15 billion, whereas Amazon reported a net loss of $2 billion.
- E-commerce sales rose 12% YOY, whereas online store sales for Amazon decreased 4% YOY. But as I said in my last video, I'm not too concerned about that.
- Membership and "other income" grew 25.6% YOY to $1.5 billion compared to Amazon's $8.7 billion, which grew 10%, and this part of the business is probably Amazon's biggest moat.
- Walmart stock has a quarterly dividend yield of 1.61%, whereas Amazon pays no dividend.
- Amazon's most lucrative segment, Amazon Web Services, increased 33% YOY to $19.7 billion. This is where the scales turn completely in Amazon's favor.
- With Amazon's recent acquisition of iRobot and 1Life Healthcare, Prime is on its way to becoming a "life subscription," and, in my opinion, you can't put a price on that.
For the full insights, do watch the video, consider subscribing, and click the special offer link below.
*Stock prices used were the closing prices of August 17, 2022. The video was published on August 18, 2022.
