Everyone knows that Wal-Mart has great prices that are hard for other companies to beat, but their might be a new competitor in town! As of after hour trading on Thursday, Amazon’s stock value is higher than Wal-Marts! How did that happen?
According to the Economic Times “The sharp increase in shares brought Amazon’s market value to $259.1 billion, more than its biggest rival, Wal-Mart Stores Inc., signaling a sea change in retailing. Amazon, which just turned 20, is now valued higher than the world’s largest retailer.”
How Amazon’s stock value is higher than Wal-Marts
At the moment Amazon is crediting the continued strength of its cloud computing business and revenue growth domestically and abroad for their stock value increase. Investors are also happy about the fact that Amazon was able to keep their costs in check while growing their revenue at the same time. If you lose customers you loose revenue, so the fact that Amazon has been able to keep their customers coming back has definitely added to their growth.
As of Thursday July 23, 2015 Amazon stocks gained profit during the second quarter of 19 cents a share on $23.18 billion in revenue, according to CNBC. Wall Street expected the site to actually lose 14 cents a share on $22.39 billion in revenue. Which shows not everyone believed Amazon would do as well as they did. So compared to Wal-Mart, at the moment Amazon’s market cap stands at about $250 billion versus Wal-Mart’s $230 billion.
Even though Amazon’s stock value is higher than Wal-Marts, Wal-Mart is still the largest company by revenue and it also recently topped the Fortune Global 500! That said Amazon’s stock value increase might be short-lived according to some analysts so lets find out what happens! Which company comes out on top on the stock value board?