Walmart Is Going to Kick Amazon's Teeth In, so Don't Be Surprised When It Happens


Brian Sozzi, TheStree

Jul 14, 2017


Goldman is dead right on its Walmart (WMT) upgrade.


But since you are unlikely someone with $50 million in the market and a Goldman analyst a phone call away, allow me to put the upgrade into plain English. Here is why Walmart could come roaring back against Amazon (AMZN) over the next five years:


         There is a talent infusion happening at Walmart that is driving much faster, much more decisive decision making. While the company certainly still has sleepy areas, the retail behemoth is acting quicker and being bolder. In effect, it is turning into Amazon -- except with over 4,000 U.S. stores in prime locations.


         And that brings me to point number two. With its purchase of Whole Foods (WFM) Amazon sent a signal that it can no longer do without stores. People want products quicker, because they effectively have malls in their pockets, in turn putting pressure on shipping costs and warehouse costs. Walmart has all this stuff already -- having this physical base of assets is no longer an albatross, it's a key competitive advantage. Amazon will need these assets, and will be forced to pay up to get them. That's unlikely baked into Wall Street's optimism.


         Walmart is proving...