Amazon (NASDAQ: AMZN) and Netflix (NASDAQ: NFLX) are two of the five members of the FAANG-Tech cohort, to which also Facebook, Apple, and the parent company of Google alphabet.
For the last month, I’ve compared Facebook to Apple, weighing the pros and cons of buying Alphabet stock. Today I’m going to compare the two remaining FAANG stocks, Amazon and Netflix, and see which is the better buy.
Different starting points, intersecting fates
Amazon and Netflix started out in different markets, but their interests are gradually overlapping. Amazon has revolutionized the retail market with its e-commerce marketplace and dominated the cloud platform market with Amazon Web Services (AWS). Netflix began as a DVD rental service that grew to become the world’s largest paid streaming video platform.
But in 2006, Amazon chased Netflix into the video rental space with a digital download platform called Unbox. This platform …