Better Buy: Amazon vs. Disney
Subscription services have risen swiftly in popularity, permeating nearly every industry. Nowadays, people can pay a monthly fee to access popular services such as streaming, gaming, and expedited shipping. However, smaller businesses have also homed in on this lucrative strategy, offering monthly subscriptions for niche services such as high-end meat delivery or even veterinary services.
By utilizing a subscription model, companies can look forward to better customer retention, financial forecasting, and cash flow management. It's not surprising that Amazon (NASDAQ: AMZN) and Walt Disney (NYSE: DIS) have both used subscriptions to grow their businesses. Each company's stock has declined over the last year thanks to inflation and a decrease in consumer spending.
Despite the losses in share price, Amazon and Disney both make great long-term buys. However, one is ultimately the better buy. Let's assess.
Source Fool.com
