$Amazon.com(AMZN)$ 38 is high for a company in this sector, no doubt about it. But Walmart is turning out to be second in online sales behind Amazon. I've comparison shopped hundreds of products, and Walmart is cheaper even when comparing the exact same brand and product. I've been buying and returning with them, and the experience is just like Amazon, except cheaper.
The online business will challenge Amazon. That's why the PE is where it is, because this is becoming, to a degree, partly a tech play. It isn't just brick-and-mortar in-store sales anymore.
One thing worth noting: Walmart's yearly subscription, similar to the one Amazon offers for 150 bucks, is seeing membership growth absolutely skyrocket. Subscription revenue is a huge source of income for Costco and Amazon as well.
Consumers are being squeezed, and more people are shopping at Walmart. Personally, I think the stock is undervalued at these levels and should be trading at 135. That's my opinion.
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