Walmart Shares Zip Past Amazon.com

By Gunjan Banerji 

Walmart Inc. shares are on a tear that some observers warn can't last.

The retailer's shares have risen 7.2% over the past eight sessions, recording their longest winning streak since August 2017. In the latest sign of how enthusiastic investors have been toward the company's shares, its stock price gained 0.8% Wednesday afternoon -- on track for its highest close since January 2018 -- even as competitor Amazon.com Inc. and major U.S. stock indexes notched declines.

For both the month of June and the second quarter of this year, Walmart has outperformed its rival Amazon, which tends to be a favorite for investors seeking shares of highflying internet companies.

The recent rush to safer stock sectors such as utilities and consumer staples has stoked interest in shares of Walmart. Investors have turned to the consumer-staples sector, betting that if the economy slows, shares of companies that produce essential household items will hold up.

The Consumer Staples Select Sector SPDR Fund, which holds Walmart and companies such as Procter & Gamble Co., has risen for eight consecutive days and was up 6% over that period. It was on track to notch its best eight-day stretch since March 2009 in recent trading, according to Dow Jones Market Data.

Walmart's recent outperformance relative to heavyweight Amazon was surprising to some observers. Walmart's business tends to be more focused on its bricks-and-mortar stores, making it less flexible, said Mike Bailey, director of research at FBB Capital Partners.

"Amazon's still got a lot more levers to pull," Mr. Bailey said.

Amazon, though, has been hit by concerns over greater regulation of technology companies.

The two companies remain entrenched in a battle for online shoppers, and investors might not want to get ahead of themselves in terms of picking a winner.

(END) Dow Jones Newswires

June 12, 2019 15:20 ET (19:20 GMT)

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