Jim Cramer Says Walmart Could Defeat Amazon

The battle between the two giants could be tilting in Walmart's favor.

Walmart  (WMT) - Get Free Report isn't out of the fight with Amazon  (AMZN) - Get Free Report for global big box store domination thanks to its physical footprint and the opportunity for growth in its e-commerce division, according to CNBC's Jim Cramer.

"Walmart's opportunity in e-commerce is extraordinary. You got 4,000 stores, every single one of them is a fulfillment center," Cramer said Tuesday on Squawk on the Street, according to Benzinga. 

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"Walmart has such an advantage over them. Think about how many Whole Foods you need in order to be able to compete with Walmart on a fresh food basis."

The company saw full-year e-commerce comps growth of 17% in its most recent quarter as part of 8.3% overall growth in U.S. comps. Globally, Walmart saw e-commerce revenue rise to more than $80 billion last year. 

E-Commerce now represents about 13% of the company's $600 billion in annual revenue. 

Walmart is also going on the offensive, trying to steal Amazon's market share in apparel and home retail by "improving our e-commerce assortment and presentation in those categories," McMillon said during the company's earnings call. 

Walmart's Latest Earnings

Walmart shares dropped despite the company posting a better-than-expected fourth-quarter due to a muted full-year profit forecast. 

Walmart said adjusted earnings for the three months ended in December came in at $1.71 per share, up 11.8% from the year-earlier period and well ahead of the Wall Street consensus forecast of $1.51 per share.

Looking into the retailer's fiscal first quarter, which ends in April, Walmart expects adjusted earnings of between $1.25 and $1.30 per share with sales rising between 4.5% and 5%. For the full year, sales will likely rise 2.5% to 3% from 2022 levels, with Walmart forecasting earnings of between $5.90 and $6.05 per share.