Netflix is favored over Amazon for upside potential in the streaming market
From Zacks Investment Research: 2025-06-19 13:00:00
Key Takeaways:
Netflix is emerging as a better streaming investment over Amazon for upside potential. Netflix expects to double advertising revenues in 2025 with the rollout of a proprietary ad tech platform. Netflix shares climbed 37.1% year to date, outperforming Amazon, which declined 3.1%.
As the streaming wars intensify, Netflix and Amazon represent different approaches to capturing entertainment dollars. Netflix is a pure-play streaming specialist, while Amazon leverages its vast ecosystem. Both companies reported strong first-quarter 2025 results, with Netflix beating earnings expectations significantly. The streaming landscape continues to evolve rapidly.
Investment Case for NFLX Stock:
Netflix’s investment thesis focuses on its dominant position as a streaming platform, with strong fundamentals and growth drivers. The company expects to double advertising revenues in 2025. Netflix’s content strategy is strengthening its competitive moat.
Investment Case for AMZN Stock:
Amazon’s investment case rests on its diversified business model and dominant positions in multiple high-growth markets. Prime Video leverages cross-subsidization from profitable retail and cloud operations.
Valuation and Price Performance Comparison:
Both stocks trade at premium valuations. Netflix’s more focused business model offers greater transparency and predictability in financial forecasting. Netflix’s shares have climbed 37.1% year to date, outperforming Amazon.
Conclusion:
Netflix emerges as the superior choice for investors seeking upside potential. Its focused streaming strategy and early-stage advertising monetization provide clearer paths to accelerated growth. For investors willing to embrace a pure-play streaming bet, Netflix offers better risk-adjusted upside potential in the evolving entertainment landscape. Both NFLX and AMZN currently carry a Zacks Rank #3 (Hold).
Read more at Zacks Investment Research: Netflix vs. Amazon: Which Streaming Giant Has Better Upside Potential? – June 19, 2025