Apple Stock vs Netflix Stock: Which is a Better Choice?

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Apple and Netflix are the biggest names in the tech world. Millions of people use both the company’s products on a daily basis. Apple has 1.5 billion active users. 

In comparison, Netflix has 182.86 million subscribers. Both companies are equally good. Netflix is growing at a very fast pace.

The pandemic has been good for Netflix as well as Apple. The number of Netflix subscribers increased during the lockdown. Similarly, NASDAQ AAPL stock value has reached all the time high in September.

Most of the people lost their jobs which took away their purchasing power. However, it hasn’t affected these companies.

Apple’s financial condition is pretty good. This company has $83 billion in cash. It is enough to run all the operations of the company. They have also increased the dividend, which clearly shows that Apple is doing well.

Unlike Apple, Netflix doesn’t have enough cash in hand. In fact, the company is under $14.7 billion of debt. They have only $5.15 billion in cash. But it is not a problem for Netflix, because they will recover this money from monthly subscriptions.

Apple’s Performance:

Despite making a profit from the sales, Apple is facing problems with the sale of products. Even after the launch of the new iPhone 12 series, the sales have not increased. The sales volume is average compared to the amazing sales result in Q1 of 2020. 

The other products are also not doing really good. However, Apple is taking advantage of the services. The services seem to perform well for Apple. The demand for Apple service is increasing day by day. The only way for Apple to make up the lost sales is by focusing more on services. In the year 2021, Apple’s growth prediction is 12.5%.

Netflix’s Performance:

The number of subscribers has increased for Netflix, but the company is facing another problem. As filming has stopped, there are problems with the content. They are unable to provide voice dubbing as well. The good news is that we will get new Netflix content in 2021. 

The company has successfully completed filming for various projects. They are going to release it shortly. In Q1, Netflix added more 16.77 million users. The revenue of the company increased by 27.6%. Experts state that Netflix will grow more. Their earnings will also increase by 56%.

Which is a better choice?

The figures show that Apple is doing better than Netflix. Even after reaching a saturation level, Apple has other ventures like services. Netflix’s performance is good, but it will fall short in a few years. It is advisable to invest your money in NASDAQ AAPL stocks as they have a high chance of growth and stability. If you have interesting to buy the stock of Apple, you can check income statement at https://www.webull.com/income-statement/nasdaq-aapl.

Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.