This is actually true. Disclosed in the last $NFLX 10K as reported in our own post here last night.
$AMZN's AWS provides "the majority" of $NFLX computing backbone.
$NFLX states they do not think $AMZN will use this as a competitive advantage. What do you think?
We think $NFLX must be higher than their P/E if they beleive this for even one second. $NFLX has yet to report a renewal of their $AMZN contract and when they do, their backbone costs will rise and they will need to swith streaming and hosting to other CDNs. $AMZN will use the AWS capacity for prime''s growth.
As such, we are selling $NFLX and buying the one CDN with enough capacity and similar architecture to take over the $NFLX business from AWS.... $AKAM. Getting a great price today for this high qual growth stock.