Walmart market cap - 250 billion, rev (2013 est) 470 billion, rev growth 23% (2012-13)
Amazon market cap - 126 billion, rev (2013 est) 74.8 billion, rev growth 5% (2012-13)
Amazon price based on Walmart cap to revenue ratio: $92
Premium for growth and being in the "tech" group $277-$92 = $185
This is not mention that Walmart has much more assets, paying dividend (2.50%), and has a very reasonable PE of 15 and is also a well known name.
My prediction? Longs with have no where to hide if growth drop below 20%. It could very well be this year. They might have to re-classify this as an online-retail stock than it will be game over.
Sentiment: Strong Sell
Profit? Walmart has debt about 7 times larger than their cash. And their growth is flat, too boot, so no reason to pay a growth premium for their stock, they are simply fairly valued for non-grower with enormous amounts of debt and a much less efficient model compared with Amazon.
And Amazon just paid its shareholders a premium of 42% in shareholder (pps appreciation).
"Amazon's video streaming division is slowing"
I doubt this. After the quarter ended I noticed from being overseas that capacity must have been greatly increased to support streaming outside of the U.S. for the first time. Walmart is non-existent online outside of the U.S. If shorts were betting on Amazon digital slowing anytime soon they are likely to be in for a big, big surprise.
Listen up wang chung It is going higher next week buy some amzn AH and cover the 300 fee and get an AMZN prime account. I mean 6 dollars a week for videos , free delivery and a grocery order of 35 at your door free sounds like a winner to me. thats why I bought CALLS on the open today
I know someone paying $45/month (45*12= $540/year) for the same deal just to deliver grocery to home. Amazon on the other hand, $299/year to have your favorite groceries at the your front door whenever you want, plus delivery free for other merchandises bought on amazon site, plus free watching of thousands of Instant Video. I think this is a very good deal. Think about it.