Better Buy: Amazon vs. Netflix
While Amazon (NASDAQ: AMZN) and Netflix (NASDAQ: NFLX) have both played significant roles in developing streaming into what it is today, their overall businesses vary considerably. Netflix derives its revenue almost exclusively from its streaming subscriptions, while Amazon has a diversified model that include such industries as e-commerce, cloud services, digital advertising, and more.
The Nasdaq Composite index is down 26% year to date, and neither Amazon nor Netflix has withstood the dip. Amazon's stock has fallen 25% and Netflix's by 63% in the same period. Investors looking to add a streaming stock to their portfolio might wonder which of the two companies will offer higher returns in the long run, so let's find out.
Netflix's stock has taken a deep dive in 2022 as losing 200,000 subscribers in the first quarter sent investors running for the hills. The company has made positive strides since then, forecasting a loss of 2 million subscribers in the second quarter of 2022 but reporting a more moderate loss of a million. With the saturated streaming market filled with more competition than anyone can keep track of, it's difficult to tell if Netflix will ever fully recover, especially with the growing threat of Walt Disney (NYSE: DIS) at its heels.
Source Fool.com
