"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 despite posting impressive top-line growth and guiding for full-year operating-margin expansion. Third-quarter revenue rose 17% year over year to about $11.5 billion, with expected similar growth for the fourth quarter. Management forecasts full-year operating margin near 29%, up from 27%. Netflix operates a focused streaming model. Alphabet taps into streaming and digital video through YouTube while also generating revenue from Google Search, digital advertising, cloud services, subscriptions, and its autonomous vehicle technology unit. Both companies benefit from structural shifts in video consumption, but Alphabet offers a more diversified business and trades at a lower valuation.
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