Street Fight: Amazon Vs. Walmart

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?

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.

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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)





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