Amazon and Netflix expected to outperform in second half of 2024, strong long-term investment potential

From Nasdaq: 2024-07-22 10:15:00

The S&P 500 is up 16% year to date in 2024, setting new highs, but growth stocks may be due for a pullback. Amazon and Netflix have climbed 20% and 33%, respectively. Amazon’s profits tripled year over year thanks to cost reductions and faster shipping. AWS revenue growth is accelerating, driving high earnings growth expectations for Amazon. Netflix has gained 260% since 2022 and expects to reach 300 million subscribers soon. Revenue rose 22% year over year due to new releases like The Roast of Tom Brady. Despite strong gains, both Amazon and Netflix remain solid long-term investments with strong prospects for growth. Analysts expect Amazon’s earnings to grow 43% this year and Netflix’s to increase by 40% this year. Both stocks have high price-to-earnings multiples but continue to show potential for further growth. Amazon and Netflix are expected to outperform in the second half of 2024 and beyond.



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