Becker Business Podcast: Amazon vs Walmart (February 25, 2026)

Episode Overview

In this episode of the Becker Business and Becker Private Equity Podcast, host Scott Becker discusses the ongoing rivalry between Amazon and Walmart. The episode, inspired by a recent Motley Fool article, explores which "trillion-dollar" stock is more attractive right now, analyzing revenue leadership, stock performance, corporate strategy, and the challenges both companies face. Scott’s analysis weighs Amazon’s recent overtaking of Walmart in U.S. revenues against the backdrop of market sentiment, profitability, and massive technology investments—particularly in AI.

Key Discussion Points & Insights

Amazon vs Walmart: Revenue & Stock Performance

• Revenue Shift:
  • Amazon has overtaken Walmart as the company with the largest revenues in the U.S.
    • “Amazon’s taking the crown, which Walmart has held for a very long time as the number one company by revenues in the US.” (Scott Becker, 00:52)
• Stock Market Performance:
  • Walmart’s stock is up about 10% year-to-date, while Amazon is down about 9–10%.
    • “Walmart’s up about 10% year to date. Walmart seems to be getting more and more efficient. Amazon remains down about 9 to 10% year to date.” (Scott Becker, 00:44)

Investment Strategy & Market Sentiment

• Amazon’s Heavy Investment in Technology and AI:
  • Amazon plans to spend billions to strengthen its technology and AI capabilities, leading to concerns about future cash flow.
    • “Amazon has got literally billions and billions of dollars that they’re going to spend to try and keep on improving their technology, their AI position, everything else. Those are some scary numbers.” (Scott Becker, 00:54)
    • “This is giving people great concern about their cash flow.” (Scott Becker, 01:03)
• Balance Between Sales and Profitability:
  • Although Amazon leads in sales, profitability remains a concern due to high reinvestment rates.
    • “Sales without profitability isn’t that much fun.” (Scott Becker, 01:41)
• Historical Context:
  • Amazon has traditionally been a strong cash flow company, investing heavily in diverse initiatives.
    • “Over the years, Amazon’s been a great cash flow company and it’s used that cash flow to invest in all kinds of other businesses, all kinds of other initiatives.” (Scott Becker, 01:10)

Which Stock to Buy?

• Market’s Choice:
  • Recent market performance implies a short-term preference for Walmart.
    • “The market says Walmart. It’s up 10% year to date. Amazon is down 9% year to date.” (Scott Becker, 01:35)
• Uncertainty:
  • Scott does not take a firm stance, emphasizing the complexity of the decision.
    • “Which one would you buy now? I don’t know.” (Scott Becker, 01:33)

Notable Quotes & Memorable Moments

• “Amazon has taken the sales crown. But again, sales without profitability isn’t that much fun.” (Scott Becker, 01:40)
• “They’re going to allocate so much money to this AI and technology as they try to make themselves again a technology superstar, that people are scared about their cash flow.” (Scott Becker, 01:16)
• “Walmart seems to be getting more and more efficient.” (Scott Becker, 00:44)
• “Over the years, Amazon’s been a great cash flow company and it’s used that cash flow to invest in all kinds of other businesses…” (Scott Becker, 01:10)

Timestamps for Important Segments

• [00:30–01:40] Main Content: Scott compares Amazon and Walmart—revenues, stock performance, investment strategy, and market sentiment.
• [00:52] Amazon overtakes Walmart in U.S. revenues.
• [00:54] Overview of Amazon’s spending on technology and its impact on cash flow.
• [01:33] Scott contemplates which stock is the better buy.
• [01:41] Emphasis on the difference between sales and profitability.

Summary & Takeaway

Scott Becker offers a concise, thoughtful commentary on the Amazon vs Walmart landscape as of early 2026. He outlines the significant shift in revenue leadership, weighs the risks and benefits of Amazon’s aggressive technology investments, and highlights Walmart’s efficiency gains and market favor. The ultimate takeaway: while Amazon now leads in sales, concerns about its profitability and cash flow linger, making the choice between the two giants a complex one—reflected in recent market trends favoring Walmart.

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