While many businesses struggle to survive the consequences of the COVID-19 pandemic, Netflix (NASDAQ:NFLX) and Amazon (NASDAQ:AMZN) are thriving. The two benefit as people worldwide are hesitant to leave their homes and avoid exposing themselves to the virus.
Since the start of the pandemic, consumers flocked to Amazon to help fill their essential shopping needs. Similarly, as movie theaters and other entertainment venues were ordered to close, Netflix was a beneficiary in the surge of demand for in-home entertainment. The two companies will report earnings later in October, and both could potentially report having surpassed 200 million subscribers.
Netflix provides a safe in-home entertainment experience during the pandemic
Between the two, Netflix is closer to reaching the 200-million-subscriber milestone. The streaming content provider reported reaching 193 million at the end of the most recent quarter. However, management cooled expectations for the near-term growth when they stated:
“In Q1 and Q2, we saw a significant pull-forward of our underlying adoption leading to huge growth in the first half of this year… As a result, we expect less growth for the second half of 2020 compared to the prior year.”