The long-term outlooks of Walmart (WMT) and Amazon.com (AMZN) are positive, partly because both names have “pricing power,” Jason Brown, the founder of The Brown Report told Schwab Network recently. The network described Brown as “an expert on stocks.”
A manager standing in a hypermarket, pointing out items available for wholesale.
WMT Has “Huge Pricing Power,” Brown Says
In addition to having “huge pricing power,” WMT is involved in e-commerce and is selling the products of other merchants, Brown noted. As a result of the latter point, it can pass some of its costs from tariffs onto its partners, he indicated.
Meanwhile, between March of 2023 and February 2025, the shares jumped 66% before dropping significantly, he noted.
Those who buy calls on WMT that expire a little less than a year from now can realize a profit of 100%, Brown contended.
AMZN Will Be Boosted by Amazon Prime, AI, Brown Says
“It’s not like everyone has cancelled Amazon Prime” because of worries about tariffs, Brown noted. Moreover, the company “has a little bit of pricing power,” while its exposure to AI, partially through its servers and the chips that it’s building, will also help the tech giant, the stock picker believes.
“With the stock at $160 to $170, investors should hold it for the long term,” Brown contended.
“Amazon is not going out of business, and it’s only a matter of time before it returns to its glory prices,” he concluded.
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This article is originally published at Insider Monkey.
