It's Official: Walmart Is No Longer the Largest Retailer. This Magnificent Growth Stock Just Took the Title Away.

Core Insights - Amazon has surpassed Walmart in quarterly net sales for the first time, generating $188 billion in Q4 2024 compared to Walmart's$ 181 billion [1] - Walmart remains the top retailer for the full year with $681 billion in revenue, growing 5% year-over-year, while Amazon's full-year net sales were$ 638 billion [1][2] - Amazon's growth rate is approximately double that of Walmart, suggesting it may surpass Walmart in annual sales by 2025 [2] Group 1: Amazon's Growth Drivers - Amazon's website sales are significant, but the largest growth is occurring in third-party sales, which generated $47 billion in Q4, up 9% year-over-year [4] - The advertising segment is rapidly growing, with Q4 revenue reaching$ 17 billion, an 18% increase, indicating substantial future growth potential [5] - Amazon Web Services (AWS) reported 19% growth in the latest quarter, generating over $100 billion in revenue for 2024, showcasing its strong performance [6] Group 2: Walmart's Position and Strategy - Despite being surpassed by Amazon, Walmart is growing its digital advertising business, with revenue increasing 27% to$ 4.4 billion in 2024 [8] - Walmart's acquisition of Vizio is expected to enhance its advertising revenue through smart-TV advertising, leveraging consumer data [9] - Walmart anticipates modest growth in 2025, expecting sales to increase by around 4% and profits by about 5%, which may limit stock performance [10] Group 3: Investment Outlook - Walmart remains a strong retail player with strategies to boost profitability, but currently, Amazon is viewed as the better investment due to its superior growth trajectory [11]