Amazon Surpasses Wal-Mart as Biggest Retailer by Market Value

SEATTLE, United States — Amazon.com Inc. surpassed Wal-Mart Stores Inc. as the world's biggest retailer by market value after a surprise second-quarter profit sent the e-commerce company's stock into record territory.

Amazon shares rose as much as 19 percent to $573.45 in after-market trading on Thursday, giving the Seattle-based company a value of about $267 billion. That compares with Wal- Mart’s $233.5 billion market valuation.

Wal-Mart still dwarfs Amazon in terms of sales, with about five times its annual revenue. But Amazon has solidified its dominance in e-commerce, forcing its big-box rival to play catch-up. Wal-Mart is investing heavily in its Web operations and developing its own online subscription service to compete with Amazon Prime.

Amazon’s market value has been steadily gaining on Wal- Mart’s this year. Amazon was already up 55 percent in 2015 through Thursday’s close, while Wal-Mart has lost 16 percent of its value.

Amazon posted revenue of $23.2 billion last quarter, a 20 percent gain. That topped analysts’ average projection of $22.4 billion. Net income was $92 million, or 19 cents a share, the company said. Analysts had estimated a loss of 14 cents.

By Shannon Pettypiece, with assistance from Spencer Soper; editors: Nick Turner, John Lear.