Amazon Overtakes Walmart as Revenue Leader Amid Klarman’s $500M Bet
Amazon's $716.9 billion in 2025 revenue narrowly eclipsed Walmart's $713.2 billion, ending the latter's 24-year reign as America's top revenue generator. The e-commerce giant's 12.4% growth outpaced Walmart's 4.7%, with AWS surging 20% year-over-year.
Billionaire investor Seth Klarman positioned Baupost Group for this inflection point, acquiring nearly $500 million in Amazon shares last quarter—now its second-largest holding. Simultaneously, he trimmed Alphabet exposure by 41% after its 65% rally, signaling a rotation into Amazon's broader monetization ecosystem.
The company guides for 11-15% growth next quarter alongside $200 billion in planned 2026 capex, suggesting accelerating divergence from legacy retailers. Third-party services now contribute nearly half of Amazon's revenue—a structural advantage Walmart's store-centric model can't match.
