The post Investors bet Amazon will fare better than its competitors in Trump’s trade war appeared on BitcoinEthereumNews.com.

Traders are pouring cash into Amazon, convinced it’s better built to survive President Trump’s trade war than its rivals. As new tariffs hit shelves across the US, retail giants are scrambling, but Wall Street is showing clear favoritism. According to The Wall Street Journal, investors believe Amazon has more protection and more upside than Walmart, even though Walmart’s latest numbers show it’s performing well. Walmart reported this Thursday that it would have to raise prices because tariffs are making goods more expensive. That warning came in the same breath as a solid earnings report showing a nearly 3% revenue increase from the same time last year and operating income that beat analysts’ expectations. Still, investors shrugged off the warning. Walmart shares initially dropped that morning but quickly bounced back. They’re now up almost 2% since earnings came out. And in the past year, Walmart’s stock has surged 53%, crushing Amazon’s 12% gain in the same period. Walmart says it can’t absorb tariff costs Walmart’s current valuation is high, and that comes with risk. The company trades at 37 times its projected earnings for the next four quarters. That’s 40% above its own three-year average, based on data from FactSet. Amazon, by comparison, trades at 33 times forward earnings, making it the cheaper option on paper. Doug McMillon, Walmart’s CEO, said Thursday during the earnings call, “More than two-thirds of the goods we sell in US stores come from the US. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins.” Those tight margins are a problem across the industry, but Amazon has worked for years to build income streams that don’t depend on moving products across borders. Walmart and Amazon…

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Filed under: News - @ May 17, 2025 2:17 pm