Amazon has overtaken Walmart to become the highest-valued retailer on the stock market after the company delivered better-than-expected quarterly results.
Shares were up 14 per cent after markets closed, following profits and revenues that beat forecasts. That pushed Amazon’s market capitalisation, or the value of all its shares added together, above $250 billion, while Walmart closed at $230 billion.
By other metrics, Walmart is still far ahead of Amazon. It has annual sales of $486 billion, leaving Amazon trailing with $89 billion.
Amazon’s sales are on the up – net sales increased 20 per cent to $23.18 billion in the second quarter. That equated to profits of $464 million, way ahead of Wall Street estimates of $257 million. The numbers contrast starkly with the same period last year, when Amazon made a loss of $15 million.
“The teams at Amazon have been working hard for customers,” said Jeff Bezos, founder and CEO of Amazon.com, in a statement. He went on to list the company’s achievements – everything from Prime Day on July 15, which broke its previous Black Friday sales record, ton debuting six new kids pilots.