Netflix, Inc. (NFLX), Amazon.com, Inc. (AMZN): Why the Newest “Sin” Stocks Can Make You Money

Alpha House was one of the five picked up for production thanks to Prime viewer support. Creator Garry Trudeau, better known for his Doonesbury cartoons, summed up the new landscape of TV,”We’re thrilled to have emerged safely from this harrowing exercise in online democracy…As the future of episodic TV packs up and moves to Seattle (italics mine), we hope the audience will continue to have fun watching the show.”

Anything that can drive more people to the Amazon.com, Inc. (NASDAQ:AMZN) ecosystem is a good thing for the company. Its forward P/E is 85.00, even higher than Netflix but its growth is better with a PEG of 5.69. Amazon, of course, has the cloud, the tablets, the e-commerce sites, and so much more that investing solely on the basis of original content and streaming is ill-advised but it may be just as promising as Netflix.

What is Comcast Corporation (NASDAQ:CMCSA) doing on this list, you ask? Isn’t it just the delivery system of linear TV content- the delivery system  threatened by streaming? Not so fast, Comcast CEO Brian Roberts speaking at a cable industry gathering on June 11 promised subscribers would be able to indulge their binge viewing appetites with Watchathons every 3 months. That may not be enough to satisfy the voracious appetite for  binge-viewing.

Comcast is trading at a 16 P/E with a 1.90% yield and a PEG of .95. It’s more of a value name than the rest but it isn’t exploiting bingers as much as it could. This reticence is to their own detriment.

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Netflix is the most direct beneficiary of binging but it doesn’t have the multiple streams of income of the rest. Comcast is a little slow on the trigger but is the best for a value investor. Amazon.com, Inc. (NASDAQ:AMZN) and Yahoo! can both prosper if they bet on the right binging cards. The more the pundits pontificate against binging, the more these stocks should run.

AnnaLisa Kraft has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Netflix. The Motley Fool owns shares of Amazon.com and Netflix. AnnaLisa is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Why the Newest “Sin” Stocks Can Make You Money originally appeared on Fool.com and is written by AnnaLisa Kraft.

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