NFLX vs AMZN Stock Comparison: AI Score, Valuation, Performance and Upside
NFLX (Netflix) is the pure-play streaming leader and AMZN (Amazon) includes Prime Video as one part of its massive multi-business conglomerate — comparing them directly for streaming competition is useful but investing in AMZN primarily for Prime Video exposure doesn't make sense given AWS, advertising, and e-commerce dominate Amazon's business. Netflix has built a profitable, cash-generative global streaming business at scale; Amazon uses Prime Video strategically to enhance Prime membership value while its real investment case rests on AWS and advertising.
NFLX vs AMZN is pure-play global streaming giant building a profitable advertising and subscription business (Netflix's 280M+ subscribers, $17B content investment, password sharing monetization, and advertising tier creating a durable global entertainment platform with expanding operating margins) versus diversified tech conglomerate using streaming as a Prime membership retention tool (Amazon's Prime Video as one feature within the $139/year Prime bundle, backed by AWS profits funding content without pure subscriber economics pressure) — focused streaming compounder versus mega-cap conglomerate with bundled streaming.
AMZN holds the edge across 3 of 5 key metrics in this comparison. AMZN has delivered stronger 1-year price return (+9.72% vs -40.56%), though NFLX has the better forward P/E setup (21.39x vs 24.68x for AMZN). On fundamentals, AMZN is growing revenue faster (19.60%), while NFLX maintains the higher operating margin (33.38%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for AMZN (+27.80%) than for NFLX (+14.61%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want pure-play exposure to global premium video streaming — Netflix is the only large public company for which streaming is the entire business; NFLX is the most direct way to invest in global streaming growth and Netflix's specific content and advertising monetization
- Value Netflix's subscriber growth, margin expansion, and advertising tier development as the next phase of profitability improvement after the successful password sharing crackdown
- Believe Netflix's global content investment scale creates durable competitive advantages in international markets that no streaming competitor can match at the same content-to-subscriber ratio
- Want broad exposure to cloud computing (AWS), digital advertising, and e-commerce leadership — Amazon's investment case is primarily about AWS margins, advertising growth, and e-commerce profitability; Prime Video is a meaningful but secondary consideration
- Value Amazon's bundled Prime ecosystem strategy as enabling Prime Video to acquire and retain subscribers without requiring content excellence — the Prime shipping benefit subsidizes Prime Video's content investment
- See Amazon's advertising business synergy with Prime Video inventory as a growing profit driver as Amazon sells more connected TV advertising at premium CPMs against its Prime Video content library
| Metric | NFLX | AMZN |
|---|---|---|
| AI scorei | 58.0 | 62.4 |
| AI ranki | #210 | #122 |
| Latest closei | $71.79 | $253.71 |
| 1M returni | -10.51% | -4.56% |
| 6M returni | -21.75% | +21.53% |
| 1Y returni | -40.56% | +9.72% |
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 | $5.94K (-40.6%) started 2025-09-18 | $10.97K (+9.7%) started 2025-09-18 |
| 5Y ago | $12.48K (+24.8%) started 2021-09-20 | $15.12K (+51.2%) started 2021-09-20 |
| 10Y ago | $73.21K (+632.1%) started 2016-09-19 | $65.47K (+554.7%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | NFLX | AMZN |
|---|---|---|
| Market capi | $340.28B | $2.77T |
| Trailing P/Ei | 25.70 | 20.66 |
| Forward P/Ei | 21.39 | 24.68 |
| Price/Salesi | 13.15 | 3.49 |
| EV/Revenuei | 7.19 | 3.74 |
| Analyst targeti | $93.66 | $328.17 |
| Target upsidei | +14.61% | +27.80% |
| Metric | NFLX | AMZN |
|---|---|---|
| Revenue growthi | 13.40% | 19.60% |
| Earnings growthi | 11.10% | 242.30% |
| EPS growthi | +11.10% | +242.30% |
| FCF margini | +52.49% | +0.42% |
| Operating margini | 33.38% | 13.69% |
| Profit margini | 28.22% | 17.44% |
| ROIC proxyi | 49.54% | 30.56% |
| Return on equityi | 49.54% | 30.56% |
| Dividend yieldi | N/A | N/A |
| Payout ratioi | 0.00% | 0.00% |
| Dividend growth streaki | N/A | N/A |
| Betai | 1.51 | 1.44 |
| Debt/equityi | 55.24 | 45.62 |
| Current ratioi | 1.14 | 1.03 |
| Quick ratioi | 0.92 | 0.84 |
Over the past year, NFLX and AMZN have moved barely in opposite directions (correlation of -0.01), based on daily returns.
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 | Growthi | -40.56% | +9.72% |
| CAGRi | -40.58% | +9.73% | |
| Volatilityi | 897.44% | 34.38% | |
| Sharpe ratioi | 0.84 | 0.31 | |
| Sortino ratioi | 8.02 | 0.50 | |
| Max drawdowni | 91.04% | 21.74% | |
| Current drawdowni | 42.17% | 10.67% | |
| Avg drawdowni | 26.82% | 8.77% | |
| Ulcer Indexi | 29.93% | 10.44% | |
| Max daily dropi | 90.03% | 5.55% | |
| Max wkly dropi | 89.92% | 14.09% | |
| 5Y | Growthi | +24.76% | +51.21% |
| CAGRi | +4.53% | +8.63% | |
| Volatilityi | 403.98% | 36.46% | |
| Sharpe ratioi | 0.42 | 0.29 | |
| Sortino ratioi | 3.33 | 0.42 | |
| Max drawdowni | 91.69% | 55.73% | |
| Current drawdowni | 46.39% | 10.67% | |
| Avg drawdowni | 29.75% | 18.17% | |
| Ulcer Indexi | 37.39% | 23.56% | |
| Max daily dropi | 90.03% | 14.05% | |
| Max wkly dropi | 89.92% | 20.35% | |
| 10Y | Growthi | +632.10% | +554.65% |
| CAGRi | +22.03% | +20.68% | |
| Volatilityi | 286.73% | 33.12% | |
| Sharpe ratioi | 0.37 | 0.60 | |
| Sortino ratioi | 2.59 | 0.88 | |
| Max drawdowni | 91.69% | 56.15% | |
| Current drawdowni | 46.39% | 10.67% | |
| Avg drawdowni | 20.37% | 12.88% | |
| Ulcer Indexi | 28.35% | 18.19% | |
| Max daily dropi | 90.03% | 14.05% | |
| Max wkly dropi | 89.92% | 20.35% |
| Category | NFLX | AMZN |
|---|---|---|
| Company | Netflix, Inc. | Amazon.com, Inc. (Prime Video) |
| Sector | Communication Services | Consumer Cyclical |
| Industry | Entertainment | Internet Retail |
| Core business | Netflix is the world's largest subscription video streaming service — with 280+ million paid subscribers in 190+ countries. Netflix produces original content (Stranger Things, The Crown, Squid Game, Wednesday, Bridgerton) and licenses content from studios for its platform. Netflix has two subscription tiers: ad-supported (lower price, with advertising) and ad-free (premium price). Netflix's content investment is $17-18 billion annually. Netflix has expanded into gaming (mobile games included with subscription) and is exploring live entertainment. | Amazon is a $2T+ conglomerate spanning e-commerce, AWS cloud computing, advertising, Whole Foods, and entertainment. Prime Video is Amazon's streaming service included as a benefit of Amazon Prime membership ($139/year or $14.99/month) — Amazon uses Prime Video as a retention tool for Prime membership rather than as a standalone profit center. Amazon has invested heavily in content (The Rings of Power, Jack Ryan, Thursday Night Football NFL rights) and in 2024 introduced advertising to Prime Video. |
| Investor focus | Investors track Netflix's subscriber additions (global paid membership growth), average revenue per membership (ARPM), content investment versus engagement and churn, advertising tier monetization, and operating margin expansion as Netflix transitions from subscriber-first to a profit-focused model. | Investors track Amazon's overall business (AWS growth, e-commerce profitability, advertising revenue) rather than Prime Video specifically — Prime Video is not separately disclosed and is viewed as a Prime membership feature rather than a standalone revenue driver. For streaming comparison purposes, Prime Video's content quality, subscriber-equivalent metrics, and advertising launch are relevant. |
- Global scale creates content investment efficiency — Netflix's 280M+ subscriber base allows it to invest $17-18B annually in content, which smaller streamers cannot match; the global audience enables hits in one country to draw audiences worldwide (Squid Game, Money Heist, Lupin — foreign language hits with massive global audiences)
- Password sharing crackdown proved subscriber and revenue accelerant — Netflix's 2023 account sharing restrictions drove massive new subscriber additions (previously password-sharing households became paying subscribers) and revenue growth significantly above expectations
- Advertising tier creating new revenue stream — Netflix's lower-priced ad-supported tier adds new subscribers at lower acquisition cost while generating advertising revenue per subscriber; as the ad tier grows, it improves Netflix's monetization at lower price points
- Prime Video's bundled value proposition removes subscriber decision barrier — Prime subscribers don't decide whether to 'subscribe' to Prime Video separately; it's included with Prime; this eliminates churn risk from content disappointment and gives Amazon a captive audience without standalone content quality requirements
- Amazon's advertising business provides monetization synergies with Prime Video — Amazon's $47B+ advertising business benefits from Prime Video inventory; TV advertising at $50+ CPMs is highly valuable inventory for Amazon's advertisers
- AWS and e-commerce profits fund content investment without subscription pressure — Amazon can invest in content (Rings of Power cost $715M for season 1) funded by AWS profits without needing subscription revenue to break even; this enables long-term bets on expensive content
- Content investment requirements are enormous and permanent — Netflix must spend $17-18B annually to maintain its content slate competitive with Disney+, Max (Warner Bros.), Hulu, and Apple TV+; any reduction in content spend risks subscriber churn as competing streamers' libraries improve
- Subscriber growth saturation in mature markets — North American and Western European subscriber penetration is high; growth increasingly relies on emerging markets (India, Southeast Asia, Latin America) where ARPM is significantly lower than developed markets
- Competition intensifies as every major studio has launched a streaming service — Disney+, Max, Peacock, Paramount+, Apple TV+, and others compete for viewer time and subscriber dollars; the streaming landscape is more competitive than when Netflix pioneered the category
- Prime Video quality and engagement is secondary to Prime membership utility overall — Prime subscribers value Prime primarily for fast shipping, not content; content quality matters for Prime membership retention but has less urgency than for Netflix where content is the entire value proposition
- Prime Video advertising introduction may reduce viewing experience — Amazon introduced advertising to Prime Video in 2024 (unless subscribers pay extra to remove ads); this reduces the 'premium' nature of Prime Video content and may draw subscriber complaints
- Streaming content investment is high for Amazon even with AWS profits — Amazon's $8-10B+ annual Prime Video and content budget is substantial; as streaming competition intensifies, returns on content investment require careful management
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