Economy News – Follow-up
Amazon has surpassed Walmart in market value, and it is now on the verge of overtaking its traditional competitor in another crucial metric: revenue.
For the past twelve years, Walmart has consistently maintained its position as the largest quarterly revenue generator. In 2012, it eclipsed Exxon Mobil, according to insights from research analyst Tajander Dahilon at LSEG.
Walmart managed to remain at the forefront even as oil prices dropped significantly from their peaks exceeding $100 per barrel in subsequent years.
In its upcoming profit report, set to be released after trading closes on Thursday, Amazon is projected by analysts at LSEG to record $187 billion in revenue. Meanwhile, Walmart will announce its results on February 20, with sales anticipated to reach $180 billion.
Despite the competitive landscape, Walmart, widely recognized as the largest retailer globally, continues to lead in annual sales, having posted revenues exceeding $600 billion in each of the past two years. For the current fiscal year, estimates suggest that Walmart’s revenues will approach $681 billion.
Amazon is gradually closing the gap. Based on fourth-quarter projections, the company is expected to report annual revenues of approximately $638 billion for 2024, marking the first occasion it surpasses the $600 billion milestone.
A significant driver of Amazon’s growth is Amazon Web Services (AWS), whose revenues have surged since 2020 and now account for roughly 17% of the company’s total sales.
The COVID-19 pandemic has also altered consumer behavior, contributing to a doubling of Amazon’s annual sales in North America since 2019, the year preceding the pandemic.
Very few companies have achieved quarterly revenues exceeding $100 billion in recent years. In addition to Walmart and Amazon, Apple has reached this threshold, albeit only during its holiday quarter, coinciding with the peak iPhone sales season. Recently, Apple reported revenues of $124 billion for its most recent quarter.
The latest member of the $100 billion quarterly revenue club is UnitedHealth, which crossed this threshold in the fiscal first quarter of the previous year and did so again in the third and fourth quarters.
Companies that are on the brink of joining this elite group include CVS Health and McKesson. CVS reported revenues exceeding $95 billion in its third quarter ending September, while McKesson recorded revenues of $94 billion.
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