Amazon and Netflix just hit all-time highs. Here’s which one is a better buy

These stocks are on fire.

Shares of tech behemoths Amazon and Netflix are surging this year. The stocks, up a respective 27 percent and 45 percent in 2018, both just hit all-time highs, and some market watchers see one as the clear pick.

While both stocks are solid growth names, Netflix looks attractive over Amazon, said Mark Tepper, president and CEO of Strategic Wealth Partners.

"Netflix is changing the way we all consume video content; if I had to pick one, it would be Netflix," Tepper said Wednesday on CNBC's "Trading Nation."

"The real reason for that is pricing power. Amazon is oftentimes the low-cost provider; you can see that with their over-the-counter health-care products, versus Walgreens or CVS. Netflix, on the other hand, could easily raise prices by 50 percent, and nobody would bat an eye, so we would take Netflix at this level," he said.

Netflix looks attractive relative to Amazon on a technical basis, said Todd Gordon, founder of TradingAnalysis.com.

"Netflix is outperforming Amazon on a relative basis, and if we get above the 0.25 level, we could come back and retest. So that means you're getting a little more bang for your buck in Netflix," he said Wednesday on "Trading Nation."

Gordon sees a projected upside target of $500 in 2018 per share, "and possibly $750, until you reach the upper end of that channel," given its uptrend parallel channel since mid-2012.

"I hold Amazon, but based on this analysis, I'm going to get into some Netflix," he said.

Amazon was trading modestly higher Thursday, while Netflix shares were lower.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Sara Eisen

Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.

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