Just caught something interesting about Walmart that most people are probably overlooking right now. So Amazon finally took the top spot as the largest U.S. company by sales, but here's what's driving the real story: Walmart is quietly crushing it in e-commerce, which is kind of ironic given that's supposed to be Amazon's playground.

The thing is, Walmart came to the digital game late, but they've got this massive advantage that Amazon simply can't replicate — 5,200 physical stores scattered across the country. Think about it: 90% of Americans live within 10 miles of a Walmart. That's not just retail footprint, that's infrastructure. They've essentially turned their entire store network into distribution hubs, and it's working.

In their latest quarter, Walmart's e-commerce sales jumped 27% in the U.S. alone. But the real kicker? Their expedited store-fulfilled delivery channels grew over 50%. They're getting orders to customers in three hours or less from local stores. Same-day delivery used to be Amazon's thing, but Walmart's doing it cheaper and faster by leveraging what they already had.

What's driving their profitability growth is equally important. Their advertising business jumped 37% year-over-year, and membership fees were up 15%. These are high-margin revenue streams that traditional retail doesn't usually tap into. In China, e-commerce revenue grew 28% and now makes up more than half their sales there.

Management is betting hard on e-commerce to keep driving momentum for the rest of the year. They're not expecting to overtake Amazon in that space, but honestly, they don't need to. Walmart's carved out its own niche with unmatched store density and logistics. Combined with their discount positioning and ability to reach consumers everywhere, it's a pretty solid long-term play.

The stock dipped a bit after earnings when the market didn't love the guidance, but that feels like people missing the bigger picture. The fundamentals around their e-commerce growth and higher-margin revenue streams look genuinely strong.