JPMorgan says buy Amazon as it's set to pass Walmart as the largest U.S. retailer next year

A contractor working for cleans a delivery truck in Richmond, California, on Tuesday, Oct. 13, 2020.
David Paul Morris | Bloomberg | Getty Images

The dramatic growth of e-commerce over the past 18 months has accelerated Amazon's rise to dominance, and even the largest traditional retailer may soon fall behind, according to JPMorgan.

Analyst Doug Anmuth reiterated in a note to clients that Amazon is one of the firm's top picks and said that the company could cross a major milestone next year. Anmuth estimated that e-commerce penetration in the retail market was pulled forward three years by the coronavirus pandemic, bringing Amazon neck and neck with Walmart.