Amazon.com Inc. (NASDAQ:AMZN), Wal-Mart Stores Inc. (NYSE:WMT) And Struggle For Dominance

Posted by Beth Hart December 9, 2013 0 Comment 2362 views


Amazon.com, Inc. (NASDAQ:AMZN)’s stock has surged more than 54% year to date and this certainly compares to some 17% gains reported by the stock of retail giant Wal-Mart Stores, Inc. (NYSE:WMT).

Comparing the Market Cap

For most of the past 10 years, Wal-Mart Stores, Inc. (NYSE:WMT)’s market cap has been in a range of $175 billion and $250 billion. Whereas Amazon.com, Inc. (NASDAQ:AMZN) has successfully grown its share over past few years from market cap of less than $50 billion in 2009 to more than $175 billion in December 2013. While Amazon’s market cap compares to two-thirds of Wal-Mart’s market cap; the online retail giant is way behind when it comes to revenue and profit.

While Amazon.com, Inc. (NASDAQ:AMZN) reported revenues of $61 billion last year and its profit is expected to remain somewhere between $1 billion to $1.5 billion; Wal-Mart Stores, Inc. (NYSE:WMT)’s revenues were $469 billion last year with net income somewhere between $15 billion and $17 billion. Extrapolating this scenario while assuming double-digit revenue growth rate, it might take some 15 to 20 years for Amazon.com, Inc. to reach the current size of Wal-Mart Stores, Inc. (NYSE:WMT).

Rising Stars of East

Goldman Sachs predicts that global e-commerce sales will climb 19.4% to approximately $963 billion with most of growth coming from Asia, worth $323.1 billion. Among the three major regions on the world map contributing the most to e-commerce sales, Asia is expected to pour in the strongest growth of 27.5% followed by Europe and the U.S. contributing some 13.2% and 12.4%, respectively.

Amidst Asia, China is heading to become the world’s largest online shopping haven, predicts consulting firm Bain & Co. The company predicted in its August report that China’s e-commerce revenues could surpass that of the U.S. in 2013. Among China’s largest e-commerce platforms, Taobao Marketplace and Tmall; Tmall is believed to take-on Amazon.com, Inc. (NASDAQ:AMZN) to become the world’s largest internet retailer by 2015, predicts Euromonitor.



About Beth Hart

Beth is from New York. She has two master’s degrees and served as a lecturer in B-School. Her master’s degree is an MBA in Global Management from the University of Phoenix (2010). She has worked for small businesses, public agencies, and large corporations. She does write articles as a freelancer.

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