Amazon.com, Inc.

(NASDAQ Global Select)
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Bullish +55

Amazon.com vs. Walmart: Which Stock Is a Better Buy in 2026?

Analyst downgrade Antitrust case AI-generated analysis

πŸ“ˆ Amazon reported fiscal year 2025 revenue of $716.9 billion with net income of $77.7 billion.

πŸ’° The company holds $122.9 billion in cash against $251.6 billion in total debt.

☁️ Amazon Web Services provides cloud infrastructure and machine learning capabilities to enterprises.

βš–οΈ The company faces significant legal challenges including antitrust proceedings from the Federal Trade Commission.

🌍 International operations in regions like China and India carry risks of regulatory constraints.

πŸ€– Amazon is positioned as a winner in the AI market with 28% global cloud market share.

πŸ’» The company is developing its own chips and holds a stake in AI start-up Anthropic.

πŸ“‰ Analysts from The Motley Fool Stock Advisor recently excluded Amazon from their top 10 best stocks list.

Bullish Signals
  • Amazon reported fiscal year 2025 revenue of $716.9 billion, representing a growth of approximately 12.4% compared with the prior fiscal year.
  • The company generated net income of roughly $77.7 billion in the fiscal year ended Dec. 31, 2025.
  • Amazon holds $122.9 billion in cash and reported a 12-month trailing operating cash flow of $161.4 billion.
  • As of the first quarter of 2026, Amazon was the global leader in the cloud market with 28% of the market share.
  • The company is developing its own chips and has a stake in the AI start-up Anthropic, positioning it for growth in the $707 billion AI market.
Risk Factors
  • Amazon faces intense global competition across retail, advertising, and cloud services where rivals often possess localized advantages.
  • International operations in regions like China and India carry risks of regulatory and ownership constraints that could disrupt the business model.
  • The company manages significant legal challenges including ongoing antitrust proceedings from the Federal Trade Commission.
  • Amazon faces risks related to its complex global fulfillment networks which could impact operational efficiency.
Full Analysis
The article compares Amazon (AMZN) and Walmart (WMT) as investment options for 2026, highlighting Amazon's dominance in e-commerce and cloud computing versus Walmart's strength in physical retail. It notes that both companies are converging in online delivery and advertising sectors. Amazon reported fiscal year 2025 revenue of $716.9 billion with net income of $77.7 billion, supported by $122.9 billion in cash and $161.4 billion in trailing operating cash flow. The company manages a diverse ecosystem including AWS, third-party seller services, and advertising platforms. The text identifies Amazon as the preferred choice over Walmart due to its role as an AI infrastructure backbone, holding 28% global cloud market share and developing proprietary chips. However, it also cites risks such as intense competition, regulatory antitrust proceedings from the FTC, and operational challenges in international markets like China and India. The article concludes by noting that while The Motley Fool Stock Advisor did not include Amazon in its current top 10 list of best stocks to buy, the publication itself maintains a position in Amazon alongside Walmart and Mastercard.