Top Stock Picker Is Bullish on WMT, AMZN

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.

While we acknowledge the potential of WMT, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WMT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: The author owns shares of AMZN but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.