Friday, November 26, 2021

Walmart vs. Amazon: Best Retail Stock for $800B Holiday Spree

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Investing With Charles

Walmart vs. Amazon: Best Retail Stock for $800B Holiday Spree

Charles Sizemore, Co-Editor, Green Zone Fortunes

It’s Black Friday.

I’m down in Peru, and the Christmas trees are already up around town.

And the best part about being out of the U.S. right now is there’s no pressure to participate in today’s Black Friday madness.

It’ll be a doozy, with U.S. shoppers spending $800 billion shopping this holiday season.

In today’s Investing With Charles, research analyst Matt Clark and I discuss two retailers that stand to benefit the most from this spending spree: Walmart Inc. (NYSE: WMT) and Amazon.com Inc. (Nasdaq: AMZN).

Let’s get into it.

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Black Friday’s Popularity Wanes

Matt: On Black Friday, even the night before, on Thanksgiving, past lines at Walmart were massive.

Now, that is not the case.

Charles: I would like to think we have evolved as a species to no longer do the Black Friday thing, but that’s not true. Black Friday just starts a month earlier now.

Matt: Exactly. Stores throw out their deals on November 1.

Charles: That’s an interesting point, though. The reason we had Black Friday before was this sense of urgency — that this is the day you need to be here because this is when it is happening. It is an event.

When you start Black Friday a month early, that dissipates.

Matt: I still think there will be lines, but I don’t think it will be nearly as crazy as it’s been in the past. No more waking up at 2 a.m. to go stand in line.

Charles: I have never done that. I have done some things I regret in life, but waking up at 2 a.m. to go wait in line for Black Friday is not one.

Click here to see how Walmart is faring now after a stellar 2020.

Be sure to check back tomorrow for my and Matt’s analysis of Amazon’s stock, and our verdict on which retailer is the better buy this holiday season.


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