Amazon vs. Walmart: Which Is a Better Stock Buy?

Amazon And Walmart To Benefit From AI Tech Impact Worth Trillions, Warsaw, Poland - 17 Aug 2023
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When it comes to a long-term investment strategy, it would make sense to put your money into a company that rakes in billions in sales, right? Retail giants such as Walmart or Amazon have varying business models, from in-person superstores to online e-commerce juggernauts, but both companies seem like viable options for investors.

For growth-oriented investors, Amazon’s leading position in artificial intelligence (AI) and cloud computing might be appealing, while Walmart’s stability and dividend payments might attract those seeking a more reliable income stream. Currently, top analysts’ recommendations could go either way. Let’s take a closer look.

Quick Take: Amazon (AMZN) 

Amazon delivered a solid performance last year and currently its stocks are trading at a reasonable valuation. Amazon Web Services (AWS) and advertising will be the growth driver going forward and here are a few takeaways from AMZN as of June 24, 2025:

  • Stock price: $213.47
  • Market cap: $2.27 trillion
  • 52-week high: $242.52
  • 52-week low: $151.61

Quick Take: Walmart (WMT)

As for many retailers, Trump’s tariff policies have driven Walmart to raise prices. However, the big-box company is finding sales success in high-margin areas, such as digital advertising. Here are a few stats about WMT as of June 24, 2025:

  • Stock price: $98.96
  • Market cap: $789.74 billion
  • 52-week high: $105.30
  • 52-week low: $66.55

E-Commerce Sales

Walmart is the leading retail giant, but its e-commerce sales are falling short. Amazon is in a league of its own regarding e-commerce sales. It commands a staggering 37.6% of all U.S. e-commerce sales, leaving Walmart a distant second with a mere 6.4%.

This significant gap is a testament to Amazon’s prowess and ability to leverage the growing e-commerce trend, gradually eroding Walmart’s lead in overall retail sales.

Edge: Amazon

Diverse Revenue Streams

Amazon’s success is not limited to e-commerce. It is strategically capitalizing on its AI investment, which is bolstering its stocks. The company has introduced various generative AI tools that could revolutionize its clients’ operations. This innovative approach attracts a growing list of high-profile customers, indicating years of untapped potential for Amazon.

Edge: Amazon

Final Take To GO

The bottom line is that Walmart and Amazon offer investors different incentives and are both solid choices for buying stocks. Like Walmart, Amazon is a low-risk investment with a reliable profit, but it also has a leading edge with ground-breaking AI advances the company is moving toward. However, Walmart’s stability may be a more attractive dividend for those with lower risk tolerance.

Caitlyn Moorhead contributed to the reporting for this article.

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