Better Buy: Amazon vs. Stitch Fix
It's always scary when a tech-savvy juggernaut identifies your niche as a new revenue stream, and that's what we saw play out two summers ago when Amazon (NASDAQ: AMZN) quietly introduced Personal Shopper by Prime Wardrobe. Similar to Stitch Fix (NASDAQ: SFIX) and other platforms where guests receive stylish apparel and accessories at regular intervals, Amazon was hoping to bring its scale, pricing, and unmatched bank of e-commerce data to this small yet growing specialty market.
The good news for Stitch Fix is that -- outside of a single quarter when the pandemic sucker-punched demand for new clothing -- it's still growing. Amazon's entry is still a challenge, but it's clearly not a priority for the world's largest online retailer. However, Stitch Fix is still going through growing pains at a time when Amazon just keeps hitting it out of the park. Let's size up the two investments to see which one is the more fashionably curated "fix" for your portfolio.
Image source: Stitch Fix.
Source Fool.com
