Should You Pick Netflix Stock Over Microsoft? – Forbes

Should You Pick Netflix Stock Over Microsoft? – Forbes


Microsoft stock (NASDAQ: MSFT) has rallied by about 130% since the beginning of 2018, slightly outpacing Netflix stock (NASDAQ: NFLX) which is up by about 120% over the same period. That’s good for Microsoft, but is it justified? We don’t think it is, due to a couple of reasons. Firstly, Netflix’s revenue growth rate was over 2x Microsoft’s between 2017 and 2019 (72% vs. 30%). Secondly, while Microsoft’s margins are thicker, with Net Margins (net income, or profits after all expenses and taxes, calculated as a percent of revenues) standing at about 31% in FY’19, Netflix has been making solid progress improving its margins (net margins roughly doubled from 4.8% to 9.3% over the last two years). Our dashboard Netflix vs. Microsoft: Does The Stock Price Movement Make Sense?
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