Amazon.com, Inc. (AMZN), eBay Inc (EBAY): Should You Buy?

Netflix, Inc. (NASDAQ:NFLX)

This company, unlike the two previously mentioned companies, has done very well in the stock market: Netflix, Inc. (NASDAQ:NFLX)’s stock spiked by more than 118% (year to date). In terms of growth in members the company total number of paid members rose by more than 40% in the past quarter (y-o-y). The company’s international segment continues to sharply rise as the number of paid members spiked by 163% in the quarter. In comparison, its number of paid members in the U.S grew by 26.8%. Nonetheless, the U.S segment still accounts for the majority of Netflix, Inc. (NASDAQ:NFLX)’s revenues at nearly 82% of streaming revenues. The company projects its number of members will only grow by 6% to 14% in the international segment and by 1 to 3% in the U.S arena (q-o-q). The slowdown in the growth rate might also reflect in the company’s stock.

In terms of revenues, the company has also outperformed the E-commerce sector as its revenues rose by 17.7% in the first quarter of 2013 (y-o-y). If the company will keep focusing on augmenting its international operations this could keep this company’s stock high.

Take Away

These three online companies have done well in the past quarter and are likely to keep their high growth rate in the coming months. Moreover, all three companies have outperformed, in terms of sales growth, not only the retail market but also the online retail market. This means, these companies are leading the way in the online retail market so that if you wish to tap into the growth of the online retail, these companies are a good starting point.

Lior Cohen has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, eBay, and Netflix. The Motley Fool owns shares of Amazon.com, eBay, and Netflix.