For over a decade, Walmart has dominated the retail world with the highest quarterly revenue, surpassing even oil giants like Exxon Mobil. However, Amazon is on the verge of a historic milestone, expected to surpass Walmart in quarterly revenue for the first time ever.
According to Fortune, Amazon is projected to report $187 billion in revenue for the latest quarter, according to analysts from LSEG, while Walmart's expected revenue is $180 billion.
Walmart, known as the world's largest retailer by revenue, has maintained its position at the top of the Fortune 500 list since 2013.
It achieved this status after overtaking Exxon Mobil in 2012. While Walmart continues to hold the top spot in annual sales, with expected sales reaching nearly $681 billion for the latest fiscal year, Amazon is closing the gap rapidly.
With a projected 2024 revenue of around $638 billion, Amazon is finally set to surpass $600 billion for the first time.
Amazon's AWS and Grocery Expansion Drive Its Rise, Despite Warning of Future Failures
One major factor behind Amazon's rise is its cloud computing business, Amazon Web Services (AWS).
AWS, which generated $90 billion in 2023, accounts for about 17% of Amazon's total sales, NBC News said.
Additionally, the pandemic shifted consumer behavior toward online shopping, leading to a surge in Amazon's North American sales, which more than doubled since 2019.
While Walmart focuses on a balance between brick-and-mortar stores and e-commerce, Amazon continues to expand its reach in new areas. Its online advertising business grew by 19% year-over-year in the third quarter of 2024.
Amazon's grocery business is also gaining traction with initiatives like the subscription model for grocery delivery.
Although Amazon is making significant strides, experts warn that this victory might be temporary. "Amazon is not too big to fail," said founder Jeff Bezos. "I predict one day Amazon will fail." Despite this, Amazon's success signals its strong position in the retail market.
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