Despite reporting a staggering $481.3 billion in net sales last year, Walmart’s value still doesn’t even come close to Seattle e-commerce giant Amazon.
Amazon’s stock exceeded $900 per share for the first time this week, bringing its market cap to more than $430 billion. Walmart’s shares are trading at about $72 per share, with a market cap of $219 billion. The discrepancy was first noted by CNN Money.
You know you’re dealing with a real Goliath when it makes Walmart look like David.
Of course, it’s not entirely fair to compare the two. Amazon is able to fund its e-commerce business with a multi-billion dollar cloud computing operation, a lineup of devices (including the Echo), a film studio, and other ventures that keep its brand ever-present in the minds of consumers.
That arsenal makes Amazon a worthy adversary for Walmart and competition between the two has been brewing for years. Walmart has tested several free shipping options to compete with Amazon Prime and in February Amazon quietly reduced its own free shipping minimum for non-Prime members to $35, matching Walmart’s minimum.
In 2016, Walmart, acquired Amazon competitor Jet.com to bolster the retailer’s e-commerce presence. The move is apparently paying off, with Walmart reporting a 29 percent increase in online sales in the fourth quarter of 2016. All that’s to say that despite Amazon’s huge lead in market cap, the competition is still on.