Amazon vs. Walmart: which stock offers the best trading potential in 2025?

Amazon and Walmart are two of the biggest players in the retail world, each with a massive market presence and loyal customer base. While Amazon dominates e-commerce and cloud services, Walmart continues to leverage its vast store network and expand its digital footprint. But which company offers better trading opportunities? In this article, we’ll compare their financial performance, growth prospects, and market trends to help you make informed trading decisions.

Amazon vs. Walmart: brief information

➡ Amazon:

• Founded by Jeff Bezos in 1994, Amazon started as an online bookstore but quickly diversified into one of the largest e-commerce and cloud computing companies globally.
• Beyond retail, Amazon’s dominant players include Amazon Web Services (AWS), Prime Video, and Amazon Alexa. AWS, in particular, is the company’s largest profit driver.
• Amazon has heavily invested in technological innovation, particularly artificial intelligence (AI), to power its growth and reduce costs.

➡ Walmart:

• Walmart was founded in 1962 by Sam Walton, and today it is the largest retailer in the world by revenue.
• With a massive physical footprint of stores (90% of the U.S. population lives within 10 miles of a Walmart), Walmart has leveraged its brick-and-mortar locations to expand into e-commerce and digital advertising.
• The company has recently focused on grocery sales, where it leads the U.S. market, and continues to expand its online capabilities.

Amazon vs. Walmart: stock performance and growth potential

➡ Amazon (AMZN)

• 2024 stock performance: Amazon has seen a solid 47% increase in its stock price year-to-date (YTD). This growth is largely driven by the continued expansion of its cloud computing business (AWS), as well as the company’s strong performance in digital advertising.
• 5-year growth rate: Over the past five years, Amazon has achieved a 22.4% compound annual growth rate (CAGR), indicating robust growth driven by its diversification into various sectors like e-commerce, cloud services, and AI technologies.
• Revenue growth: Amazon’s revenue growth is fueled by the increasing demand for its e-commerce platform and AWS services. The company is also expanding into new business areas like artificial intelligence (AI) and digital advertising. Despite heavy reinvestment into these areas, the company continues to see impressive top-line growth.
• Future outlook: Amazon is well-positioned for continued long-term growth, especially in its cloud services (AWS), AI technologies, and global e-commerce. However, its heavy capital expenditure, especially in AI and logistics, could limit short-term profitability.

➡ Walmart (WMT)

• 2024 stock performance: Walmart’s stock has surged 80% YTD in 2024, largely due to its successful pivot to digital services, including Walmart+ memberships, e-commerce expansion, and improved physical retail offerings.
• 5-year growth rate: Walmart’s 5-year CAGR stands at 3.8%, indicating slower but steady growth compared to Amazon. Much of this growth comes from its dominance in the grocery sector and its ability to adapt to digital trends.
• Revenue growth: Walmart continues to experience growth in physical retail, grocery, and e-commerce. The company has also expanded into digital advertising and membership services like Walmart+, which now play a key role in driving earnings.
• Future outlook: Walmart’s outlook is stable, with its continued strength in grocery sales, physical stores, and e-commerce growth. It is expected to maintain its leadership in the grocery sector while benefiting from digital innovations and membership services.

Amazon vs. Walmart: risk factors and investment suitability

Both companies present different risk profiles for investors:

Amazon:

❗ Risks: Amazon faces higher volatility, with larger swings in its stock price. This is due to heavy reinvestment in technological innovation (AI and cloud computing) and its aggressive expansion into new markets like the pharmacy business. Moreover, Amazon faces regulatory scrutiny in both the U.S. and Europe, especially concerning antitrust issues.

✅ Investment suitability: Amazon is more suited for growth investors who are willing to take on higher risks in exchange for potentially higher rewards, particularly in technology and innovation.

Walmart:

❗ Risks: While Walmart is more stable, it faces challenges within the grocery sector, such as thin margins and rising competition. Additionally, Walmart’s e-commerce expansion may not match Amazon’s growth rate. However, the company’s physical presence and established customer loyalty make it a strong defensive stock.

✅ Investment suitability: Walmart is ideal for value investors or income-focused investors, thanks to its dividend payments and stable earnings profile. It’s also more suitable for those seeking a stable investment during market downturns, as its lower volatility presents fewer risks.

Amazon vs. Walmart: which one is better to trade and invest?

Both Amazon and Walmart present compelling investment opportunities, but which one is the best choice for 2025 depends on your investment goals and risk tolerance:

• Amazon is a top choice for growth investors looking for high potential returns. With its impressive CAGR of 22.4% over the past five years and strong performance in cloud computing (AWS) and e-commerce, Amazon continues to show robust future growth potential. However, it comes with higher volatility, making it more suitable for those who can tolerate market fluctuations and are looking for significant long-term gains. If you’re interested in sectors like cloud technology, AI, and digital advertising, Amazon provides an exciting avenue for growth.
• Walmart, on the other hand, caters more to value investors. With its solid grocery dominance and strong physical retail presence, Walmart presents a stable investment. The company’s 80% YTD increase in stock value in 2024 is a strong indicator of its adaptability and growth in e-commerce and membership services. While its CAGR of 3.8% over the past five years shows slower growth compared to Amazon, Walmart is ideal for investors seeking stability, dividends, and steady performance, especially in the grocery and retail sectors.

Best Forex brokers to trade Amazon and Walmart stocks

Here are 5 of the best Forex brokers to consider when trading Amazon and Walmart stocks:

HF Markets (HFM)

• Why choose HF Markets: HF Markets offers a wide range of assets, including stocks, indices, commodities, and forex, making it suitable for trading stocks like Amazon and Walmart. The broker is known for competitive spreads, a variety of account types, and low-latency execution.
• Key features:
  • Access to US stocks, including Amazon and Walmart
  • Demo accounts for risk-free practice
  • Fast order execution, ideal for trading stocks
  • Strong customer support and educational resources

eToro

• Why choose eToro: eToro is a highly user-friendly platform with a social trading feature, making it easy to follow and copy successful traders. It provides access to a broad range of US stocks, including Amazon and Walmart.
• Key features:
  • Commission-free stock trading in Amazon and Walmart
  • CopyTrading to mimic experienced traders
  • Social trading community to discuss market strategies
  • User-friendly interface suitable for beginners and advanced traders

Risk disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

XTB

• Why choose XTB: XTB offers a powerful trading platform, xStation 5, with advanced charting tools, making it a good choice for traders who need technical analysis tools for trading stocks like Amazon and Walmart.
• Key features:
  • Access to US stocks and indices
  • Excellent charting tools and risk management features
  • Fast and reliable execution speeds
  • Educational content for both beginners and experienced traders

AvaTrade

• Why choose AvaTrade: AvaTrade offers a diverse range of assets, including stock CFDs, enabling traders to access major US stocks like Amazon and Walmart. The platform provides reliable tools for technical and fundamental analysis.
• Key features:
  • Access to stock CFDs like Amazon and Walmart
  • Wide range of platforms including MetaTrader 4 and 5
  • Advanced tools for charting and analysis
  • Regulated in multiple jurisdictions ensuring trader safety

BlackBull Markets

• Why choose BlackBull Markets: BlackBull Markets is a robust broker offering competitive spreads and deep liquidity, which is essential for trading high-volume US stocks like Amazon and Walmart. Their platform provides professional-level tools, suitable for both beginner and advanced traders.
• Key features:
  • Access to US stocks, including Amazon and Walmart
  • Advanced trading tools, including MetaTrader 4 and 5
  • Tight spreads and deep liquidity for fast executions
  • Highly regulated and trusted broker with strong customer support

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