Blog 5

Stocks

Netflix defines themselves as an American subscription streaming service and production company. Basically, subscribers to Netflix around the world are able to stream movies and television shows. What makes Netflix special is that they have the most subscribers of any streaming service, they have zero commercials, and a majority of their content is original. Netflix is currently at the forefront of the streaming industry. They have achieved economies of scale and have a lot of pricing power, demonstrating their dominance of the market.

As of late, Netflix’s stock price has been decreasing quite a bit. However, there is no reason to worry. Netflix management has recently devised a very strong financial strategy to get back on their feet. Moreover, when a company’s stock price falls, it typically means that they are poised to grow quite a bit. But, the reason so many investors are keen on Netflix is because they are set to release some of their best content in 2022.

Netflix has been a cornerstone of the entertainment industry for a long time. Though there are many new competitors such as Disney Plus, Hulu, and HBO, at the end of the day, experience always wins. That is why Netflix will always be dominant and is yet another reason why this stock is a good buy right now.

  • Financials
    • Market Cap: $173.3B
    • Revenue: $29.698B
    • Profit Margin: 17.23%
    • Operating Margin: 20.86%
    • Gross Margin: 41.64%

Next, Amazon defines themselves as an American multinational technology company which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. Amazon’s service is unparalleled, and like Netflix, they are the titans of their industry.

Amazon has the most experience in the ecommerce industry and thus, is unbeatable. Amazon is often referred to as a monopoly, demonstrating their general dominance over the entire ecommerce industry. In other words, no company is more dominant in their respective industry than Amazon

Amazon’s infrastructure and employees are among the best of the best, with Amazon consistently ranking as one of the best companies to work for. Without productive workers, Amazon could not achieve the dominance it currently has. Finally, Amazon’s subscription service has increased quite a bit, and because they are so experienced with ecommerce, they have developed a marketing strategy that appeals to nearly every consumer in the world.

Like Netflix, Amazon’s stock price is currently decreasing, but this means that they are poised to grow in the long run. Like Netflix, they have already achieved economies of scale, so investors have nothing to worry about whatsoever.

  • Financials
    • Market Cap: $1.55T
    • Revenue: $469.822B
    • Profit Margin: 7.10%
    • Operating Margin: 5.30%
    • Gross Margin: 42.03%

Financial Term

The financial term for this blog is EPS, which stands for Earnings Per Share. This metric is normally calculated by dividing profit by number of shares outstanding and is typically used to calculate corporate value. Like metrics mentioned in previous blogs, it is another great preliminary measure of how companies are performing. The higher a company’s EPS is, the better.