Prime Highlights:
Walmart has held the position of top quarterly revenue generator for over a decade but is now poised to be overtaken by Amazon.
Amazon’s cloud computing division, Amazon Web Services (AWS), has seen substantial growth, contributing about 17% to total sales, which has helped boost Amazon’s revenue.
Key Background:
In a notable shift within the retail landscape, Amazon is on track to surpass Walmart in quarterly revenue for the first time, marking a significant milestone for the e-commerce giant. According to analysts surveyed by LSEG, Amazon is expected to report $187 billion in revenue for its latest quarter, a figure that will outpace Walmart’s projected $180 billion, set to be announced on February 20.
While Amazon has long exceeded Walmart in market capitalization, this marks the first time it will lead in revenue. Walmart had maintained its position as the top revenue-generating retailer for over a decade, ever since it overtook Exxon Mobil in 2012. Despite fluctuations in oil prices over the years, Walmart’s dominance in quarterly revenue remained secure.
However, Amazon’s robust growth, particularly driven by its cloud computing division, Amazon Web Services (AWS), has propelled the company to new heights. AWS has seen a dramatic surge in revenue, more than doubling since 2020, and now accounts for approximately 17% of Amazon’s total sales. This growth, coupled with changes in consumer behavior driven by the COVID-19 pandemic, has allowed Amazon to increase its North American sales by over 100% since 2019.
Despite this shift in quarterly performance, Walmart remains the leader in annual revenue, consistently surpassing $600 billion in sales for the past two years. It is expected to reach approximately $681 billion for its latest fiscal year. In contrast, Amazon’s projected revenue for 2024 is expected to exceed $638 billion, marking its first time crossing the $600 billion threshold. The achievement underscores the growing influence of Amazon in the global retail sector, alongside other companies such as Apple, which has also reached the $100 billion revenue milestone in select quarters. This marks a rare achievement for companies in an exclusive club that includes only a few of the largest global corporations.
