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Walt Disney (NYSE: DIS) and Amazon (NASDAQ: AMZN) are top companies with long histories of solid returns for investors.Disney’s track record is much longer, but Amazon has had a head start in price performance for the past two decades Coronavirus pandemic, however, they are almost on the other end of the spectrum – Amazon is barely able to keep up with soaring demand, while Disney has had to stop many of its most lucrative operations, and Amazon’s benefits don’t end after the pandemic.In addition, no one knows when the restrictions will apply for face-to-face gatherings will come to an end – on which the House of the Mouse is extremely dependent

It’s clear that Amazon has the advantage in the short term, but let’s see if Disney’s long-term prospects are enough to overtake the ecommerce retailer as a better investment

At the forefront of Disney’s growth over the next few years will be streaming services, the company expects to have over 300 million customers for its three services by 2024: Disney, Hulu and ESPN as of Dec 2, it had 137 million subscribers, and it’s growing its base rapidly. For example, Disney went from its debut to 868 million in just over a year

The theme parks, which are still allowed to operate at reduced capacity, remain very popular with consumers even though the threat of COVID-19 remains, which shows two things: First, the pent-up demand that is being felt among consumers to get out of their homes and second, the trust people are showing in Disney’s ability to keep families safe.It’s almost a given that Disney’s parks will be at full capacity again when coronavirus infection is no longer a risk represents

And despite the millions of people quitting cable service in favor of streaming content, Disney’s media segment remains strong in fiscal 2020, which ended in October 3, it achieved 105% of operating profit for the entire company at the core of the media segment is the live -Sport With streaming subscription availability still limited, it is likely to keep boosting the segment’s profits for a few more years

Overall, Disney’s long-term potential is excellent, but there is still a risk that the coronavirus will limit its operations and the extent to which cable cutting will weigh on the most profitable segment of 2020

The pandemic allowed Amazon to attract new customers and generate more spend from those who already use its platform on a regular basis.The general population quickly accelerated the shift in spending from in person to online

According to the Federal Reserve Bank of St Louis, ecommerce sales as a percentage of total sales rose to 161% from 118% at the start of the pandemic, before pulling back slightly to 14.8% as stores started reopening The phenomenon saw Amazon’s sales drop by 38 in 2020 % increased With the risk of contagion with the coronavirus persisting, the e-commerce giant predicts that sales will increase by around 365% in the first quarter of 2021

The downside of the increasing online migration of shopping is that it has forced brick and mortar businesses to sell or not offer a large portion of their products there on Amazon in order to start or grow their relationship with the e-commerce giant as a result, the rise in the sales force Third-party service sales up over 50% each in the last three quarters Small and medium-sized businesses are less likely to remove the products after the pandemic after putting the work on the site

And the highly profitable Amazon Web Services, which offer businesses and institutions a wide range of on-demand-on-demand computer services, increased sales by 30% in 2020, despite Amazon further reducing prices for customers in the segment accounted for over 50% of operating profit in 2020 and is likely to continue to thrive as Amazon signed $ 50 billion in contracts for its services as of December 31

Although the post-pandemic growth rate could slow, Amazon still has overall options to provide robust sales growth for investors

Undoubtedly, Amazon Outperforms Disney During the Pandemic After COVID-19 Has More Potential to Grow Sales for Several Years Yet, Amazon still has a long way to go to become as profitable as Disney except last year , in which capacity was greatly reduced, Disney’s operating profit margin is three times higher than Amazon’s

But Amazon’s sustained higher sales growth, rising profit margins, and better position to thrive during a pandemic give Amazon the edge over Disney so if all you need to do is pick one of these great companies to invest in, should it be Amazon

Market data from FactSet and Web Financial Group

Disney Stock

World News – CA – Better Buy: Walt Disney vs. Amazon | The colorful fool

Source: https://www.fool.com/investing/2021/02/11/better-buy-disney-vs-amazon/