NFLX vs. AMZN vs. WMT

NFLX, congratulations on being the streaming pioneer, and WMT,  congratulations on being the commerce (not E) juggernaut, but what AMZN has in spades is its ability to do both, while having the cash generating machine of its AWS business. 

Neither NFLX nor WMT has the engineering talent to combat what AMZN is building.  Both of these companies are really vertical businesses in their own right.  NFLX in streaming, and WLT in retail, though, Walmart has made significant strides in their e-commerce. 

But I keep coming back to AMZN.  I (finally) bought this stock for the first time earlier this year (yes, 17 years late to the party), because their (relatively) new CEO comes from the AWS division, and is focused on profits and efficiency more than founder Jeff Bezos ever was.

Amazon is an interesting case study.  There is no way they are ever able to survive & achieve their immense success over the years w/o Wall Street's incredible  support.  You see, Wall Street typically punishes unprofitiable enterprises if they do not generate profits quickly, or have some roadmap to it, but AMZN was given an incredibly long leash by Wall Street for its first 15 years approximately of unprofitable growth.  Bezos was never about efficiency, but growth...   I know, because I watched this stock grow immensely, while being unprofitable all the while...  Now, we have an operator at CEO that ran the AWS division that is all about efficiency.  

Count me in..  AMZN has its hands in many businesses going forward, including AI, and with an operator even better than Bezos.  

I start this thread because I think about how many $millions NFLX had to pay the NFL for the Christmas Day NFL Game streaming rights... while AMZN already has Thursday Night Football AND the capacity to pay for it with its AWS division.  

AMZN has the capacity to expand in this area if they so choose w/ its AWS profits, while NFLX is a streaming business....... and a streaming business only. 

AMZN (like GOOGL), has their hands in a lot of growth areas, with big profit drivers.  That is key. 

@Rush51

 Good info.  Interestingly, I just started a large position of WMT a few weeks ago and added a large chunk Monday.

Wow... Interesting, Raiders... Is this an investment or trade in WMT.  

I know TGT has been an absolute disaster w/ company misteps for awhile now....  to WMT's benefit.  

@Rush51

 I would say a 'trade' until around 110-120ish.  After that I will look at it again and consider holding it longer.  I had a big position in Costco earlier and now have sold it.  I still have FSTA, an ETF that has both.

But right now I see the edge to be in WMT.  The dividend yield is a little better.  But even though Costco is growing better, the valuation right now with Walmart looks better to me.  I do not have the exact figures but something like 45 P/E to 30 P/E.  

I also anticipate inflation and economic things I consider to benefit WMT more in the next 6-9 months or so.

Costco did real well and I could have held it I think.  But I took the profit and switched to WMT for them to catch up at a great time.  But still have the FSTA with COST.

I do not think I have ever looked at buying TGT.  FSTA has a very small percentage in it.

Ok my family - Rush51 & Raiders22 had AMZN for some time up 51.29 %  only 55 shares.

[Quote: Originally Posted by Raiders22]@Rush51  I would say a 'trade' until around 110-120ish.  After that I will look at it again and consider holding it longer.  I had a big position in Costco earlier and now have sold it.  I still have FSTA, an ETF that has both. But right now I see the edge to be in WMT.  The dividend yield is a little better.  But even though Costco is growing better, the valuation right now with Walmart looks better to me.  I do not have the exact figures but something like 45 P/E to 30 P/E.   I also anticipate inflation and economic things I consider to benefit WMT more in the next 6-9 months or so. Costco did real well and I could have held it I think.  But I took the profit and switched to WMT for them to catch up at a great time.  But still have the FSTA with COST. I do not think I have ever looked at buying TGT.  FSTA has a very small percentage in it.[/Quote]

Good for you..    Both WMT & COST seem to be good stocks w/  good management teams.   

TGT.... Not so much, which explains why it trades at a lower PE.  Its earnings delivery is real lumpy & poor.   Stock price movement is real squirrely because investors are trying to predict when they will finally get their act together.  But the management team is lacking IMHO.