Business

Amazon’s Value Surpasses Wal-Mart After Surprise 2Q Profit

Published

11 years ago

July 24, 2015

Oakland Post

(Kris Tripplaar/AP Photo)

MAE ANDERSON, AP Technology Writer

NEW YORK (AP) — It’s official: Amazon is bigger than Wal-Mart.

Amazon shares surged 15 percent on Friday after the e-commerce powerhouse reported a surprise second-quarter profit and a better-than-expected 20 percent jump in revenue.

The sharp increase in shares brought Amazon’s market value to $259.1 billion, more than its biggest rival, Wal-Mart Stores Inc., signaling a sea change in retailing. Amazon, which just turned 20, is now valued higher than the world’s largest retailer.

Bentonville, Arkansas-based Wal-Mart Stores is valued at about $231.7 billion. The company, with 11,767 stores worldwide, still has much higher sales, $485.65 billion in the year ended Jan. 31, compared with Amazon’s $89 billion in annual revenue last year.

But investors applauded Amazon’s ability to keep costs in check while growing its revenue. Amazon credited the profit to continued strength of its cloud-computing business and strong revenue growth both domestically and abroad. That came as it held costs for marketing and package delivery in check.

A company’s market value is calculated by multiplying the number of shares of stock it has in circulation by the current price of one share.

It was the second usurper in two months to Wal-Mart’s value. Last month Facebook became more highly valued than the world’s largest retailer, knocking it out of the top 10 list of the highest-valued companies in the Standard & Poor’s 500 index.

Amazon is firing on all cylinders, analysts said.

“When it is good, it is great: particularly as the business shifted to higher growth across a matrix of operating segments, product categories, and geographies in the second quarter,” said William Blair analyst Mark Miller. He said a variety of Amazon’s units boosted results: its $99 annual Prime membership, third-party sellers, and its logistics and delivery capabilities.

“In view of the sharply higher preopening stock price, the question is whether this is as good as it gets,” he added.

Amazon Web Services, the Seattle company’s cloud-computing business, was another standout, with revenue that jumped 81 percent to $1.82 billion.

“AWS was particularly robust,” said Cantor Fitzgerald analyst Youssef Squali. “We believe that Amazon is now starting to move away from the heavy build years for its ecommerce business just as its top line accelerates, yielding the beginnings of the much sought-after margin leverage.”

Shares rose $72.08, or 15 percent, to $554.26 in midday trading. The stock had been up 35 percent in the past 12 months.

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Financial Wellness and Mental Health: Managing Money Stress in College 

While everyone’s financial situation is unique, several common sources of stress have the potential to strain your financial health. These include financial and economic uncertainty, existing debts, unexpected expenses, and mental or physical health changes. Financial stress may differ from situation to situation, but understanding the factors contributing to yours may help you begin to craft a plan for your unique circumstances.

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March 17, 2026

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Sponsored by JPMorganChase

As a college student, managing financial responsibilities can be stressful.

If you’ve found yourself staying up late thinking about your finances or just feeling anxious overall about your financial future, you’re not alone. In one survey, 78% of college students who reported financial stress had negative impacts on their mental health, and 59% considered dropping out. While finances can impact overall stress, taking steps to manage your finances can support your mental, emotional and physical well-being.

When it comes to money, the sources of stress may look different for each student, but identifying the underlying causes and setting goals accordingly may help you feel more confident about your financial future.

Consider these strategies to help improve your financial wellness and reduce stress.

Understand what causes financial stress

2. Determine your financial priorities

Start by reflecting on your financial priorities. For students this often includes paying for school or paying off student loans, studying abroad, saving for spring break, building an emergency fund, paying down credit card debt or buying a car. Name the milestones that are most important to you, and plan accordingly.

3. Create a plan and stick to it

While setting actionable goals starts you on the journey to better financial health, it’s essential to craft a plan to follow through. Identifying and committing to a savings plan may give you a greater sense of control over your finances, which may help reduce your stress. Creating and sticking to a budget allows you to better track where your money is going so you may spend less and save more.

4. Pay down debt

Many students have some form of debt and want to make progress toward reducing their debt obligations. One option is the debt avalanche method, which focuses on paying off your debt with the highest interest rate first, then moving on to the debt with the next-highest interest rate. Another is the debt snowball method, which builds momentum by paying off your smallest debt balance, and then working your way up to the largest amounts.

5. Build your financial resilience

Some financial stress may be inevitable, but building financial resilience may allow you to overcome obstacles more easily. The more you learn about managing your money, for instance, the more prepared you’ll feel if the unexpected happens. Growing your emergency savings also may increase resilience since you’ll be more financially prepared to cover unexpected expenses or pay your living expenses.

6. Seek help and support

Many colleges have resources to help students experiencing financial stress, like financial literacy courses or funds that provide some assistance for students in need. Talk to your admissions counselor or advisor about your concerns, and they can direct you to sources of support. Your school’s counseling center can also be a great resource for mental health assistance if you’re struggling with financial stress.

The bottom line

Financial stress can affect college students’ health and wellbeing, but it doesn’t have to derail your dreams. Setting smart financial goals and developing simple plans to achieve them may help ease your stress. Revisit and adjust your plan as needed to ensure it continues to work for you, and seek additional support on campus as needed to help keep you on track.

 JPMorgan Chase Bank, N.A. Member FDIC