- AMZN
-1.41% - NFLX
+0.05%
Amazon AMZN andNetflix NFLX are among the most influential names in streaming entertainment. Netflix is a pure-play streamer serving an audience approaching one billion people, while Amazon’s Prime Video sits within a broader ecosystem spanning e-commerce, advertising and Amazon Web Services (“AWS”).
Both companies are leaning on live sports, ad-supported offerings and originals to capture viewers heading into the 2026 holiday season. With fresh third-quarter 2026 results and guidance just out, the comparison is especially timely.
Let’s delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for AMZN Stock
Amazon’s entertainment push is backed by a diversified profit engine. Thursday Night Football’s fifth season on Prime Video averaged 17.7 million viewers through six games, its best start ever, while the second season of NBA on Prime drew more than two million U.S. viewers for its opening doubleheader. Season Four of Reacher attracted 66 million global viewers in its first 28 days, and Amazon MGM Studios has crossed $1.2 billion in global box office so far in 2026.
The holiday lineup is packed, featuring The Greateston Nov. 4, The Rings of PowerSeason 3 on Nov. 11, Madden on Nov. 18 and Blade Runner 2099on Nov. 25, alongside Black Friday Football and NBA doubleheaders that carry live sports into early 2027.
Amazon is also sharpening monetization. The newly launched Amazon Ads Agent brings streaming TV into AI-driven Full-Funnel Campaigns, while Alexa+ became free for U.S. customers with compatible Fire TV devices. For the fourth quarter of 2026, Amazon expects net sales of $240-$247 billion, up 12-16%, operating income of $28.5-$33.5 billion and high-teens advertising revenue growth. Management projects AWS growth above 40% in both 2027 and 2028, while Amazon Leo remains on track to begin initial service this year.
Challenges persist. Heavy AI spending, with 2026 capital expenditures of roughly $220 billion, pushed trailing 12-month free cash flow to an outflow of $42.4 billion. Competition in streaming from rivals, including Netflix, also remains intense. Still, AWS and advertising cash flows give Amazon ample room to keep funding content.
The Zacks Consensus Estimate for AMZN’s 2026 earnings is pegged at $12.69 per share, indicating an 76.99% increase from the figure reported in the year-ago quarter.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
