Question: Analyze and compare Amazon.com and Walmart Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Walmart Inc. (WMT) is the largest
Analyze and compare Amazon.com and Walmart Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Walmart Inc. (WMT) is the largest retailer in the United States. Amazon and Walmart compete in similar markets; however, Walmart sells through both traditional retail stores and the Internet, while Amazon sells only through the Internet. Earnings and common stock outstanding information was obtained from recent financial statements for both companies as follows (in millions): Net income Average number of common shares outstanding Amazon $11,588 Walmart 494 $14,881 2,850 a. Determine the earnings per share for each company. Neither company paid preferred stock dividends. Round your answers to two decimal places. Amazon Walmart b. Which company appears more profitable from an earnings-per-share perspective? c. The market price of Amazon common stock was $1,847 per share at a time when Walmart's was $119 per share. How would you explain this difference in market price given the earnings per share computed in (a) for both companies? Check My Work 2 more Check My Work uses remaining Previous Next >
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