"Netflix (NASDAQ: NFLX) has pulled back recently following its latest earnings report, even though the streaming service posted impressive top-line growth and continues to expect its full-year operating margin to expand. That move has some investors wondering whether this is a good time to buy one of the market's most closely watched growth stories. Like Netflix, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) taps into similar streaming and digital video trends while leaning on digital advertising and subscription services."
"Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. Both companies benefit from structural shifts in how people watch video and use the internet. But their business models and valuations point in different directions for investors deciding where to put new money to work. One arguably looks like the clear winner when comparing their investment prospects head-to-head."
Netflix pulled back after its latest earnings report despite posting impressive top-line growth and guiding for continued revenue expansion. The company reported third-quarter revenue up 17% year over year to about $11.5 billion and expects similar fourth-quarter growth. Management is guiding full-year operating margin toward roughly 29%, up from 27% the prior year. Netflix operates a focused streaming business model and is pursuing incremental initiatives within that framework. Alphabet benefits from streaming tailwinds via YouTube while also drawing on Google Search, advertising, a growing cloud business, subscriptions, and self-driving technology, and it trades at a lower valuation than Netflix.
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