Better Buy: Amazon vs. Stitch Fix
Apparel is probably the last thing on your mind these days, and that's fair. When you're largely staying at home over the past five months you don't exactly need to spice up your wardrobe. Even if you happen to be working in public, your social calendar probably isn't what it used to be -- and that's another reason for you to be spending less on clothing these days.
Stitch Fix (NASDAQ: SFIX) is the leading brand in the nascent realm of online personal styling. Amazon (NASDAQ: AMZN) entered this niche last summer when it rolled out its Personal Shopper by Prime Wardrobe service. The two services are similar. A shopper will answer a few questions to gauge fashion preferences, and then a tech-assisted stylist will go to work in curating items that get shipped out to the customer. The shopper then has a few days to return any of the items they don't want to keep in a postage-paid box.
This was a booming niche before the COVID-19 crisis, and it should continue to be a growth market in the near future. Is the better fit for your portfolio Stitch Fix, as a young pure play, or the more well-rounded Amazon? Let's play stylist. Let's try on both stocks to see which one we'll keep. We'll send the other one back.
Source Fool.com
