Walmart vs. Amazon: Which Trillion-Dollar Stock Is a Better Buy Right Now?

Key Points

• Walmart is showing excellent revenue and earnings growth in the face of economic uncertainty.

• Amazon’s cloud computing business is accelerating as it steps up its AI spending plans.

• One stock trades at a much more attractive valuation than the other.

Walmart (NASDAQ: WMT) was once the 800-pound gorilla in U.S. retail, and Amazon (NASDAQ: AMZN) was the young disruptor with its e-commerce business. Today, Amazon’s worth more than twice as much as Walmart.

Much of Amazon’s value stems from its cloud computing segment, Amazon Web Services (AWS), which has benefited from the growing demand for artificial intelligence (AI) compute in recent years. But investors have sold off Amazon shares amid fears that its $200 billion capital expenditure budget for 2026 won’t deliver the return on invested capital needed to justify the massive expense. Meanwhile, Walmart’s stock price has climbed as investors see it as largely insulated from the impact of AI. The stock’s momentum carried the…