Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Walmart (NYSE:WMT) stock is trading lower following Amazon’s (NASDAQ:AMZN) announcement of free same-day delivery for fresh groceries, though Mizuho has maintained its Outperform rating and $115.00 price target on the retail giant. Amazon, with its massive $2.38 trillion market cap and $670 billion in trailing twelve-month revenue, continues to strengthen its position as a prominent player in the Broadline Retail industry.
Amazon’s new grocery initiative is currently available in 1,000 cities and towns across the United States, with plans to expand to more than 2,300 locations by year-end, intensifying competition between the two retail powerhouses. According to InvestingPro, Amazon’s robust 10.87% revenue growth and strong financial health score suggest it’s well-positioned for this expansion.
Mizuho views this development as an escalation of head-to-head competition, with Amazon advancing its grocery and rural investments while Walmart continues to build its marketplace and advertising segments.
The firm notes that Amazon’s previous grocery efforts, including its 2017 Whole Foods acquisition, "never really panned out the way it should have," though it plans to monitor developments closely.
A recent Mizuho consumer survey across rural zip codes—following Amazon’s $4 billion rural supply chain investment—found that Walmart and Target (NYSE:TGT) were identified as the companies most at risk of losing market share to Amazon.
In other recent news, Amazon reported strong financial results for the second quarter of fiscal year 2025, surpassing market expectations and its own guidance. Freedom Broker responded by raising its price target for Amazon to $255, while maintaining a Hold rating. Additionally, BofA Securities reiterated its Buy rating with a price target of $272, following OpenAI’s announcement that its new models will be available on Amazon Web Services. In a significant development, Amazon Web Services has agreed to provide up to $1 billion in cloud discounts to U.S. government agencies, aiming to enhance IT transformation and AI innovation. Furthermore, Amazon expanded its same-day grocery delivery service to over 1,000 cities in the U.S., with plans to reach more than 2,300 locations by the end of 2025. Meanwhile, Anthropic, backed by Amazon, announced it will offer its Claude AI model to the U.S. government for $1, joining other AI startups in seeking federal contracts. These recent developments highlight Amazon’s strategic moves in technology and service expansion.
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