Amazon vs. Walmart: Does Size Matter? 2-19-26

Summary

Becker Business Podcast Summary

Episode: Amazon vs. Walmart: Does Size Matter?

Host: Scott Becker
Date: February 19, 2026

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Brief Overview

In this concise episode, Scott Becker breaks down the ongoing business rivalry between Amazon and Walmart. The main theme centers on the question: “Does size matter?” now that Amazon has finally surpassed Walmart in annual sales revenue. Becker explores the significance of scale versus sustainable performance, comparing the current growth trajectories, stock performance, and underlying business strategies of these two retail titans.

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Key Discussion Points & Insights

Amazon Notches Up a Historic Milestone

• Amazon has overtaken Walmart in annual sales revenue after years of close competition.
• [00:40] Scott Becker: “Amazon finally after all these years has gotten to a spot where its annual revenues are bigger than Walmart's annual revenues.”

Growth vs. Profitability: Contrasting Trajectories

• Amazon:

  • Despite greater sales, its growth is slowing, especially in its high-margin AWS (Amazon Web Services) segment.
  • Down approximately 11% year to date; softening margins are a concern.
  • Still “constantly trying different things and it's getting bigger and bigger. No question about it.” (Becker, 01:32)

• Walmart:

  • Not growing sales as quickly, but showing remarkable consistency and execution.
  • Stock up 16% year to date, a notable contrast to Amazon’s slump.
  • Ecommerce now a $150 billion/year business; a major area of ongoing investment and success.
  • Becker describes Walmart as “the little engine that could,” emphasizing its “very sustainable... very significant” profits.
  • [01:12] Becker: “Walmart just keeps on rocking, it keeps on doing what it does extremely well, it executes better than anybody else.”

Market Sentiment and Rewards

• The market is currently rewarding Walmart for its dependable execution and profits, while Amazon struggles to maintain the momentum that propelled it as a “real high flyer.”

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Notable Quotes & Memorable Moments

• On Amazon’s Milestone:
  “Amazon finally after all these years has gotten to a spot where its annual revenues are bigger than Walmart's annual revenues.”
  (Scott Becker, 00:40)

• Comparing Execution:
  “Walmart just keeps on rocking, it keeps on doing what it does extremely well, it executes better than anybody else.”
  (Scott Becker, 01:12)

• The Little Engine That Could:
  “It's almost hard to refer to Walmart like this. But Walmart's up 16% year to date. Again, Amazon's down 11% today. And the basic concept is Walmart just keeps on rocking... the little engine that could.”
  (Scott Becker, 01:19)

• On What the Market Rewards:
  “That’s why the market’s rewarding Walmart currently, where Amazon, once a real high flyer, [is] having a harder time in its higher growth technology businesses.”
  (Scott Becker, 01:58)

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Key Timestamps

• 00:30 – 00:40: Introduction to Amazon vs. Walmart size comparison.
• 00:40 – 01:12: Amazon surpasses Walmart in sales; contrasting stock trends.
• 01:12 – 01:32: Walmart’s “little engine that could” attributes: execution and sustainable profits.
• 01:32 – 01:58: Amazon’s innovation push, Walmart’s steady profitability, and market responses.

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Conclusion

This episode succinctly frames the perpetual Amazon-Walmart rivalry as both a battle of business models and an illustration of market preferences. As Amazon becomes the largest in revenue, Walmart’s reliability, steady profits, and e-commerce evolution are what investors currently value most—raising thoughtful questions about whether scale alone determines long-term business success.

Transcript

[A]

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[B]

This is Scott Becker with the Becker business and the Becker Private Equity Podcast. Today's discussion is Amazon versus Walmart. Does size matter? So here's the deal with Amazon versus Walmart. Many of us have been expecting this for literally a decade plus. But finally Amazon surpassed Walmart in annual sales revenues. Just the who is bigger question. Amazon finally after all these years has gotten to a spot where its annual revenues are bigger than Walmart's annual revenues. Now the question becomes does size matter? And here's the deal when we talk about this. Amazon's down about 11% year to date, is its growth is slowing and its margins are softening a little bit. Its biggest margin business, aws, isn't growing nearly as fast as it was. Walmart in contrast is not growing its sales that quickly. But it's like the little engine that could and it's almost hard to refer to Walmart like this But Walmart's up 16 year to date again, Amazon's down 11 today. And the basic concept is Walmart just keeps on rocking, it keeps on doing what it does extremely well, it executes better than anybody else it has added on over the years. It's E business which is Now I think 150 billion a year business. But what really, what is amazing to me about Walmart versus Amazon, Amazon's constantly trying different things and it's getting bigger and bigger. No question about it. Walmart continues to be the little engine that could keeps on delivering profits in a very sustainable way, a very significant way. And that's why the market's rewarding Walmart currently where Amazon wants a real high flyer having a harder time in its higher growth technology businesses. A fascinating discussion, Amazon versus Walmart. Does size matter? Thank you for listening to the Becker Business and the Becker Private Equity Podcast.

[A]

If you're an H Vac technician and a call comes in, Grainger knows that you need a partner that helps you find the right product fast and hassle free. And you know that when the first problem of the day is a clanking blower motor. There's no need to break a sweat. With Grainger's easy to use website and product details, you're confident you'll soon have everything humming right along. Call 1-800-GRAINGER clickgrainger.com or just stop by Granger for the ones who get it done.