NFLX vs AMZN: Netflix vs Amazon Stock Comparison: AI Score, Valuation, Performance and Upside
Netflix is the pure-play global streaming leader monetizing entirely through subscriptions and ads, while Amazon Prime Video is a bundled content strategy that serves primarily as a Prime membership retention tool. Netflix has cleaner streaming economics; Amazon has massive AWS and advertising cash flows that fund content regardless of direct streaming ROI.
NFLX vs AMZN is pure-play streaming monetization versus content as a bundle retention tool within a diversified technology empire — Netflix wins if streaming becomes a high-margin, sustainable global subscription business; Amazon wins across many businesses while Prime Video adds free retention value.
NFLX holds the edge across 3 of 5 key metrics in this comparison. AMZN has delivered stronger 1-year price return (+9.91% vs -40.70%), though NFLX has the better forward P/E setup (19.10x vs 24.81x for AMZN). On fundamentals, AMZN is growing revenue faster (16.60%), while NFLX maintains the higher operating margin (32.30%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for NFLX (+54.21%) than for AMZN (+27.54%).
- →want pure-play exposure to global streaming subscription growth and operating margin expansion
- →believe Netflix's ad tier and password sharing crackdown create a multi-year earnings acceleration
- →prefer the focused streaming business model without cloud, e-commerce, or logistics complexity
- →are comfortable paying a premium multiple for Netflix's global streaming leadership
- →prefer diversified exposure to AWS cloud, advertising, e-commerce, and AI infrastructure
- →value Prime Video as one of many Prime benefits rather than a standalone streaming investment
- →want Amazon's massive free cash flow generation to fund both AI capex and streaming simultaneously
- →prefer AMZN's more diversified risk profile over pure streaming bet
| Metric | NFLX | AMZN |
|---|---|---|
| AI score | 58.0 | 60.8 |
| AI rank | #245 | #192 |
| Latest close | $73.83 | $247.31 |
| 1M return | -8.10% | +3.67% |
| 6M return | -17.47% | -0.03% |
| 1Y return | -40.70% | +9.91% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | NFLX | AMZN |
|---|---|---|
| 1Y ago | $5.85K (-41.5%) started 2025-07-14 | $10.96K (+9.6%) started 2025-07-14 |
| 5Y ago | $13.47K (+34.7%) started 2021-07-14 | $13.43K (+34.3%) started 2021-07-14 |
| 10Y ago | $75.32K (+653.2%) started 2016-07-14 | $66.73K (+567.3%) started 2016-07-14 |
Hypothetical — past performance does not guarantee future results.
| Metric | NFLX | AMZN |
|---|---|---|
| Market cap | $308.95B | $2.64T |
| Trailing P/E | 23.67 | 29.31 |
| Forward P/E | 19.10 | 24.81 |
| Price/Sales | 13.15 | 3.49 |
| EV/Revenue | 6.69 | 3.68 |
| Analyst target | $113.15 | $312.91 |
| Target upside | +54.21% | +27.54% |
| Metric | NFLX | AMZN |
|---|---|---|
| Revenue growth | 16.20% | 16.60% |
| Earnings growth | 86.40% | 74.80% |
| EPS growth | +86.40% | +74.80% |
| FCF margin | +55.44% | +1.32% |
| Operating margin | 32.30% | 13.14% |
| Profit margin | 28.52% | 12.22% |
| ROIC proxy | 48.49% | 24.29% |
| Return on equity | 48.49% | 24.29% |
| Dividend yield | N/A | N/A |
| Beta | 1.52 | 1.46 |
| Debt/equity | 53.79 | 53.30 |
| Current ratio | 1.41 | 1.18 |
| Quick ratio | 1.18 | 0.97 |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | NFLX | AMZN |
|---|---|---|---|
| 1Y | Growth | -41.50% | +9.58% |
| CAGR | -41.63% | +9.62% | |
| Sharpe ratio | 0.84 | 0.31 | |
| Max drawdown | 91.27% | 21.74% | |
| Max daily drop | 89.81% | 8.27% | |
| Max wkly drop | 89.92% | 14.09% | |
| 5Y | Growth | +34.74% | +34.35% |
| CAGR | +6.15% | +6.09% | |
| Sharpe ratio | 0.43 | 0.22 | |
| Max drawdown | 91.69% | 55.77% | |
| Max daily drop | 89.81% | 14.05% | |
| Max wkly drop | 89.92% | 20.35% | |
| 10Y | Growth | +653.21% | +567.32% |
| CAGR | +22.38% | +20.91% | |
| Sharpe ratio | 0.37 | 0.61 | |
| Max drawdown | 91.69% | 56.15% | |
| Max daily drop | 89.81% | 14.05% | |
| Max wkly drop | 89.92% | 20.35% |
| Category | NFLX | AMZN |
|---|---|---|
| Company | Netflix, Inc. | Amazon.com, Inc. |
| Sector | Communication Services | Consumer Cyclical |
| Industry | Entertainment | Internet Retail |
| Core business | Global streaming platform with 300+ million subscribers across 190+ countries. Netflix earns revenue through monthly subscriptions (standard and ad-supported tiers) and is expanding into live events (boxing, NFL Christmas games) and gaming. | AWS cloud, e-commerce, advertising, Prime membership (includes Prime Video), logistics, and Amazon Studios. Prime Video is bundled with Prime membership — most viewers are not paying separately for it. |
| Investor focus | Subscriber growth, average revenue per user (ARM) from password sharing crackdown and ad tier, content spending ROI, operating margin expansion, and live content strategy. | AWS margin expansion, Prime Video as a Prime membership retention tool vs standalone streaming, advertising business growth, and AI infrastructure investment. |
- →Netflix is the global streaming market leader with the broadest international content library and brand recognition
- →Ad-supported tier creates a new revenue stream that monetizes price-sensitive subscribers who would otherwise churn
- →Password sharing crackdown has driven significant subscriber growth and pricing power validation
- →Prime Video is bundled with Prime membership — content investment is offset by Prime retention value across all of Amazon's businesses
- →Amazon Studios has produced award-winning originals (The Boys, Rings of Power) and won Thursday Night Football NFL rights
- →Amazon's advertising business growing rapidly with Prime Video ads adding a streaming advertising revenue stream
- →Content spending remains enormous — Netflix must continuously invest to prevent churn and subscriber growth
- →Live sports rights are expensive and Netflix has limited experience as a live sports broadcaster
- →Competition from Disney+, Max, Peacock, and Prime Video all spending heavily on content
- →Prime Video's value to Amazon is primarily as a Prime retention tool — standalone streaming economics are not clearly positive
- →AWS and AI capex competition with Microsoft, Google, and CoreWeave requires enormous ongoing investment
- →Content quality is inconsistent — Amazon Studios has had significant misses alongside its hits
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