Disproportionate value of digital companies

Amazon is valued five times more than Walmart (though the exact ratio fluctuates). Why?

Amazon’s operations are expensive. Every item shipped requires handling, packaging, and delivery to your doorstep. Walmart, on the other hand, brings customers to their stores, increasing efficiency and upsell potential.

Yes, Amazon’s AWS is profitable, but the overvaluation of “digital” businesses feels outdated. Physical retailers like Walmart operate with far fewer variables, and often more efficient economics.

At some point, the ‘digital premium’ won’t make sense anymore.