Amazon’s Walmart Problem

Walmart reported solid third-quarter numbers today, driving home what’s surely a sore point for Jeff Bezos: No matter how hard Amazon tries, it can’t conquer Walmart.

The Arkansas retailer’s revenue grew 5.5% to $169.6 billion, and the company showed optimism about the holiday season by raising its full-year sales forecast. Investors are happy with the results—Walmart’s shares closed up 3% on Tuesday. So far this year the stock has rallied 63%, compared to Amazon’s 36%, although Amazon trades at a big premium to Walmart on a multiple of expected next 12 months’ sales.