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.

Videos

Trades to Watch

Trader Bios

About

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.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

Read more

Connect