{"id":162621,"date":"2020-04-21T22:56:46","date_gmt":"2020-04-21T22:56:46","guid":{"rendered":"https:\/\/stockchase.com\/discover\/?p=162621"},"modified":"2020-04-21T22:56:46","modified_gmt":"2020-04-21T22:56:46","slug":"better-stock-buy-disney-netflix-shopify-amazon-stock","status":"publish","type":"post","link":"https:\/\/stockchase.com\/discover\/better-stock-buy-disney-netflix-shopify-amazon-stock\/","title":{"rendered":"Better Stock: Buy Disney or Netflix (DIS vs NFLX), Buy Shopify or Amazon (SHOP vs AMZN)"},"content":{"rendered":"<p>As Germany and other European countries relax their lockdowns and Trump considers it for America, markets are already pricing in a recovery. The V vs. U debate rages on, but whatever the shape the recovery eventually takes, the stocks below &#8211; Buy Disney or Netflix (DIS vs NFLX), Buy Shopify or Amazon (SHOP vs AMZN) &#8211; are already rallying and will likely continue to climb in the weeks ahead.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Discover What&#039;s Inside<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/stockchase.com\/discover\/better-stock-buy-disney-netflix-shopify-amazon-stock\/#The_Battle_of_the_Better_Stock_to_Buy\" >The Battle of the Better Stock to Buy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/stockchase.com\/discover\/better-stock-buy-disney-netflix-shopify-amazon-stock\/#Buy_Disney_or_Netflix\" >Buy Disney or Netflix<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/stockchase.com\/discover\/better-stock-buy-disney-netflix-shopify-amazon-stock\/#Buy_Shopify_or_Amazon\" >Buy Shopify or Amazon<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"The_Battle_of_the_Better_Stock_to_Buy\"><\/span>The Battle of the Better Stock to Buy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It&#8217;s been a while since we&#8217;ve done a battle of the stocks, but the post-COVID-19 recovery offers an opportunity to compare some popular pairs that investors with cash are considering:<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-93372\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2019\/07\/netflix-vs-disney-1-760x201.png\" alt=\"Better Stock Buy Disney or Netflix\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Buy_Disney_or_Netflix\"><\/span>Buy Disney or Netflix<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>With millions around the world stuck in their homes, one of the few sources of entertainment left is streaming. The two biggest players, <a href=\"https:\/\/stockchase.com\/NFLX-Q\">Netflix<\/a> and <a href=\"https:\/\/stockchase.com\/DIS-N\">Disney<\/a>, have seen traffic surge as new subscribers flock to the streaming sector. According to a U.S. <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/finance.yahoo.com\/news\/coronavirus-streaming-disney-144545521.html\" target=\"_blank\" rel=\"noopener\">study<\/a><\/u><\/span><\/span> conducted last month, 85% of Americans have increased their streaming consumption since the pandemic began, with Disney+ and Hulu\u2014both owned by the House of the Mouse\u2014leading new subs.<\/p>\n<p>Disney also caught a lucky break by launching its service in <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.cnbc.com\/2020\/03\/24\/disney-plus-launches-in-uk-and-europe-amid-coronavirus-lockdowns.html\" target=\"_blank\" rel=\"noopener\">Europe<\/a><\/u><\/span><\/span> at the height of the pandemic last month. So, buying Netflix and Disney is a no-brainer, right?<\/p>\n<p>Not exactly. Either stock was a slam dunk a month ago when Netflix was 32% cheaper and Disney 8% lower. On Monday, analyst <a href=\"https:\/\/stockchase.com\/expert\/view\/1315\/Darren-Sissons\">Darren Sissons<\/a> felt that the Netflix ship has sailed\u2014everyone is talking about the latest show they&#8217;re watching (<i>Giri\/Haji<\/i> is killer, by the way) and the stock&#8217;s PE is hitting a nosebleed 106x.<\/p>\n<p>That said, Netflix keeps rising, up 3.44% on Monday when markets slid, and it boasts a one-year return of 21.41%. Does Netflix have more room to run? Likely it will on April 21 when it releases earnings, which should reflect a blockbuster quarter. But will that boost hold and make it a better stock buy over DIS?<\/p>\n<p>It&#8217;s a different story at Disney.<\/p>\n<p>Theme park (&#8220;experiential&#8221;) accounted for 35% of company revenues in Q4-2019, as did their cable channels , such as ESPN. Movies, whether released in theatres or SVOD, accounted for 18%, while the new streaming division made up 19% of the revenue pie. Disney+ launched only five months ago, but has exceeded expectations.<\/p>\n<p>Most likely, streaming revenues grew in the last quarter. However, without the theme parks, Disney is losing a third of its revenues which drags down the company\u2014and its stock price. <a href=\"https:\/\/stockchase.com\/expert\/view\/1315\/Darren-Sissons\">Sissons<\/a> acknowledges that the parks as well as its cruiselines will be a short-term problem, but still recommends the stock. Analyst <a href=\"https:\/\/stockchase.com\/expert\/view\/1253\/Rick-Stuchberry\">Rick Stuchberry<\/a> is more cautious and urges investors to sit and wait.<\/p>\n<p>Easing the lockdowns will be a gradual process, so it&#8217;s unlikely that viewers will suddenly abandon their computers and TVs en masse. Also, there&#8217;s a chance of a dreaded \u201csecond wave\u201d of COVID-19 cases that will drive viewers back inside. So, expect continued streaming on both platforms, but limited subscription growth. For Disney, it&#8217;s a great unknown when and how they will reopen their amusement parks around the world. Certainly, demand is there, but public safety trumps that.<\/p>\n<p><i>What&#8217;s the better stock buy? Buy Disney or Netflix?<\/i><br \/>\nOur verdict: Buy Netflix on pullbacks, and invest in Disney for the long-term, but don&#8217;t back up the truck.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-162720\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/04\/SHOP-T-vs-AMZN-1-760x254.png\" alt=\"Better Stock Buy Shopify or Amazon\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Buy_Shopify_or_Amazon\"><\/span>Buy Shopify or Amazon<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><span lang=\"zxx\"><span style=\"color: #000000;\">This is the Superman vs. Spiderman showdown of the tech giants. I admit, the comparison is inexact, since Shopify provides small businesses to set up shop online, while Amazon sells a ton of stuff online, but also boasts the world&#8217;s largest cloud computing services, is investing heavily in self-driving cars, and is building its own delivery network. Amazon&#8217;s tentacles reach almost everywhere. What both companies have in common, though, is scale.<\/span><\/span><\/span><\/p>\n<p><span style=\"color: #000080;\"><span lang=\"zxx\"><span style=\"color: #000000;\"> On April 20, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-04-20\/shopify-surges-on-eclipsing-td-to-become-canada-s-no-2-stock\" target=\"_blank\" rel=\"noopener\">Shopify<\/a> overtook <a href=\"https:\/\/stockchase.com\/TD-T\">TD<\/a> as the second-biggest company with a market cap exceeding $100 million. During this pandemic, both stocks dipped in late March, but not as deeply as its peers, and both have bounced back with a vengeance. In the past month, Shopify has soared 84%, easily outstripping Amazon&#8217;s 27%. <\/span><\/span><\/span><\/p>\n<p>This doesn&#8217;t detract from Amazon&#8217;s accomplishments. After all, it hit a <a href=\"https:\/\/www.marketwatch.com\/story\/amazon-stock-hits-record-high-on-hopes-for-a-coronavirus-related-boom-2020-04-14\" target=\"_blank\" rel=\"noopener\">record high<\/a> last week., and popped 6% in early Tuesday trading. Rather, the difference reflects how Shopify has plunged lower than Amazon, so Shopify has bounced back further.<\/p>\n<p><span style=\"color: #000080;\"><span lang=\"zxx\"><span style=\"color: #000000;\"> The theme that emboldens both stocks is that e-retailing has blossomed during this pandemic and will not turn back. Amazon is the safer stock, because it has its fingers in more businesses, two of them doing gangbusters, while Shopify relies on one kind of revenue. However, Shopify is riding serious momentum, soaring 200% in the past year as Amazon lags at 27%. Then again, Shopify&#8217;s chart is a lot rockier than the smoother Amazon. <\/span><\/span><\/span><\/p>\n<p><a href=\"https:\/\/stockchase.com\/expert\/view\/1392\/Brian-Madden\">Brian Madden<\/a> is unconvinced with Shopify, discouraged by its fast run-up and sky-high expectations. In contrast, <a href=\"https:\/\/stockchase.com\/expert\/view\/1417\/Kim-Bolton\">Kim Bolton<\/a> sees a long runway ahead in its fulfillment business and in opportunities abroad. As for Amazon, the consensus is that consumers will continue to shop online while businesses continue to use their cloud platform.<\/p>\n<p><i>What&#8217;s the better stock buy? Buy Shopify or Amazon?<\/i><br \/>\nOur verdict: Shopify is too rich for my blood, but buy Amazon for the long-term on any pullback. And there will be dips ahead. Though it&#8217;s unlikely markets will return to the March 23 trough, volatility won&#8217;t disappear as long as this virus is around.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As Germany and other European countries relax their lockdowns and Trump considers it for America, markets are already pricing in a recovery. The V vs. U debate rages on, but whatever the shape the recovery eventually takes, the stocks below [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":162717,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cwp_meta_box_check":"No","cwp_rev_product_name":"","cwp_rev_product_image":"","wppr_links":[],"cwp_rev_price":"","wppr_options":[],"wppr_pros":[],"wppr_cons":[],"footnotes":""},"categories":[17],"tags":[],"class_list":["post-162621","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lists"],"wppr_data":{"cwp_meta_box_check":"No"},"_links":{"self":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/162621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/comments?post=162621"}],"version-history":[{"count":0,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/162621\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media\/162717"}],"wp:attachment":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media?parent=162621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/categories?post=162621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/tags?post=162621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}