Amazon (AMZN) and Netflix (NFLX) are competing in the streaming market, with Amazon leveraging an integrated Prime membership that includes Prime Video, live sports, and content from its $8.5 billion MGM acquisition. Netflix, with over 325 million paid memberships, continues to focus on content-driven growth while advancing its advertising and live sports segments. By the end of 2026, Amazon plans to unveil major content like *The Lord of the Rings: The Rings of Power* Season 3 and NBA games, while Netflix aims for a revenue growth of 12-14% in the same timeframe.
For fiscal year 2026, the Zacks Consensus Estimate forecasts Amazon’s earnings at $8.85 per share (a 23.43% increase year-over-year) versus Netflix’s at $3.60 per share (a 42.29% increase year-over-year). Amazon’s strength lies in diversification, evidenced by a 28% year-over-year revenue growth in AWS and profitability in Prime Video, while Netflix reported a 16% revenue increase for the first quarter of 2026. Both companies are eyeing significant digital ad growth, but Amazon’s broader revenue stream creates a more resilient growth profile.
In terms of valuation, AMZN trades at a forward P/E ratio of 26.01 compared to NFLX’s 20.81, reflecting Amazon’s diversified earnings potential. Year-to-date price performance shows NFLX shares down 17.5% while AMZN has returned 5.5%. Given this context, Amazon’s valuation appears more justified, suggesting it may offer better upside potential for investors.
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