GO
Loading...

Street Fight: Amazon Vs. Walmart

Tuesday, 17 Nov 2009 | 6:20 PM ET

All this week we’ll be examining battles that are unfolding as the year draws to a close. Who wins, who loses and how can you profit?

First we’re looking at the rivalry that’s recently exploded between Walmart and Amazon.

As we first told you last month Walmart.com cut prices on 10 new hardcover books to less than $10 each, not only igniting a price war with Amazon but also Target and Sears as well. Walmart.com CEO Raul Vazquez says its aim is to be the biggest and most valued online retail site.

WALMART AMAZON.COM

Annual Revenue (’08): $375 BILLION (’08) $19 Stock Performance YTD: -4% +159%
Promoter: CEO Mike Duke CEO Jeff Bezos
Strategy: Every Day Low Prices Free Shipping
Secret Weapon: “The Rollback” “The Kindle”

What’s the trade?

Street Fight
The Fast Money team asks which stocks will win the key sector battle.

I’d get long Amazon, says Joe Terranova. They’re setting themselves apart from the competition and gaining market share.

I’m bullish Walmart, counters Karen Finerman. Their sales are $400 billion while sales at Amazon are something like $24 billion. Amazon valuations don’t make sense considering those figures. If these two continue on this path, Walmart is clearly the much better value.



______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Nov. 17th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (POT), (NUE), (AAPL), (BAC), (EEM), (GE), (INTC); Finerman Owns (FLS); Finerman's Firm Owns (MSFT), (NOK), (PLCE), (TGT), (CBY), (BGC), (WMT); Finerman's Firm Owns (BKS) Puts ; Finerman's Firm Is Short (USO), (IJR), (MDY), (IWM), (UNG), (KFT); Finerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Call Spreads; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (FLS), Is Short (FLS) Calls; Finerman's Firm And Finerman Own (WFC) Preferred; Terranova Owns (POT), (SU), (AAPL), (GOOG); Terranova Owns Dec. Crude Oil . Futures; Terranova Owns Dec. Gold Futures; Terranova Owns Dec. Nat Gas Futures; Terranova Works For (VRTS) ; Najarian Owns (ANN) Call Spread; Najarian Owns (DTV) Calls; Najarian Owns (JRE) Calls; Najarian Owns (CLF) & (CLF) Calls ; Najarian Owns (AA) Call Spread; Najarian Owns (EXPE) Calls ; Najarian Owns (GE) Calls ; Najarian Owns (INTC) & (INTC) Calls ; Najarian Owns (LAZ) & short (LAZ) Calls ; Najarian Owns (MCD) Call Spread; Najarian Owns (QLOGIC); Najarian Owns (RIMM) Call Spread; Najarian Owns (YHOO) & (YHOO) Puts

For Nishu Sood
(TOL) Is an Investment Banking Client of Deutsche Bank
Deutsche Bank Owns (RYL)
(RYL) Is an Investment Banking Client of Deutsche Bank
Deutsche Bank Owns (PHM)
(PHM) Is an Investment Banking Client of Deutsche Bank
Deutsche Bank Owns (MTH)
(MTH) Is an Investment Banking Client of Deutsche Bank
Deutsche Bank Owns (MDC)
Deutsche Bank Owns (LEN)
(LEN) Is an Investment Banking Client of Deutsche Bank
Deutsche Bank Owns (KBH)
(KBH) Is an Investment Banking Client of Deutsche Bank

For Jeff Saut
Raymond James Owns (WMT)
Raymond James Received Compensation from (MO)
Raymong James Makes A Market in (AMSC)
Raymond James Received Compensation from (AIV)





CNBC.com with wires

  Price   Change %Change
AMZN
---
WMT
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report