Amazon.com, Inc. (AMZN): Among the Best Streaming Service Stocks to Buy According to Analysts

Amazon.com, Inc. (AMZN) has been making waves in the streaming service market, with analysts predicting that it will continue to be a strong performer. The company's Prime Video service, launched in 2006 as Amazon Unbox, has grown significantly over the years, offering a wide range of content and attracting a large subscriber base. Here's why Amazon.com, Inc. (AMZN) is among the best streaming service stocks to buy according to analysts:

1. Growing Subscriber Base: Amazon Prime Video has an ad-supported reach of 200 million customers worldwide, including 115 million in the US. This growth can be attributed to Amazon's focus on improving delivery speed and selection, as well as its investment in original content. The company's Prime membership program, which includes access to Prime Video, has also contributed to its subscriber growth, with over 200 million paying members worldwide as of 2020.
2. Strong Content Library: Amazon Prime Video offers a vast library of movies, TV shows, and original content. As of February 2024, the service had nearly 14,500 movies in the UK alone, accounting for an 89% share of the whole content provided by the service. Additionally, Amazon's acquisition of MGM Studios in 2022 further expanded its content library, adding over 4,000 movies and 17,000 TV shows to its collection.
3. Investment in Original Content: Amazon Prime Video has invested heavily in original content, such as "The Lord of the Rings: The Rings of Power," "The Expanse," and "The Man in the High Castle." These exclusive titles have helped Amazon stand out in the competitive streaming landscape and attract new subscribers.
4. Ad-Supported Tier: In 2024, Amazon Prime Video introduced an ad-supported tier, which is the default option for watching content on the platform. This move allows Amazon to attract a broader audience by offering a free, ad-supported option while still providing an ad-free option for those willing to pay extra. This strategy has been well-received by consumers, with over one in three respondents supporting Amazon's decision to launch the ad-supported tier in a global survey conducted in October 2023.
5. Analyst Recommendations: According to a survey of 64 analysts, Amazon.com, Inc. (AMZN) has an average target price of $262.7, with a low estimate of $205 and a high estimate of $306. The average target predicts an increase of 14.88% from the current stock price of $228.68. Additionally, the average analyst rating for Amazon stock is "Strong Buy," indicating that analysts believe this stock is likely to perform very well in the near future and significantly outperform the market.



In conclusion, Amazon.com, Inc. (AMZN) is among the best streaming service stocks to buy according to analysts due to its growing subscriber base, strong content library, investment in original content, ad-supported tier, and positive analyst recommendations. By focusing on improving delivery speed and selection, Amazon has solidified its position as a leading player in the streaming service market. As the market continues to evolve, Amazon's commitment to innovation and customer satisfaction is likely to drive further growth and success.