NFLX vs. BABA
NFLX (Netflix, Inc.) and BABA (Alibaba Group Holding Limited) are both stocks. NFLX operates in Entertainment (Communication Services), while BABA operates in Internet Retail (Consumer Cyclical). Over the past 10 years, NFLX returned 23.48%/yr vs 3.87%/yr for BABA. At a 0.34 correlation, their price movements are largely independent.
Performance
NFLX vs. BABA - Performance Comparison
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Returns By Period
In the year-to-date period, NFLX achieves a -22.27% return, which is significantly higher than BABA's -27.73% return. Over the past 10 years, NFLX has outperformed BABA with an annualized return of 23.48%, while BABA has yielded a comparatively lower 3.87% annualized return.
NFLX
- 1D
- -5.82%
- 1M
- -17.74%
- YTD
- -22.27%
- 6M
- -21.83%
- 1Y
- -40.82%
- 3Y*
- 19.79%
- 5Y*
- 7.29%
- 10Y*
- 23.48%
BABA
- 1D
- -1.99%
- 1M
- -18.51%
- YTD
- -27.73%
- 6M
- -29.83%
- 1Y
- -6.26%
- 3Y*
- 9.52%
- 5Y*
- -12.29%
- 10Y*
- 3.87%
NFLX vs. BABA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
NFLX Netflix, Inc. | -22.27% | 5.19% | 83.07% | 65.11% | -51.05% | 11.41% | 67.11% | 20.89% | 39.44% | 55.06% |
BABA Alibaba Group Holding Limited | -27.73% | 75.80% | 11.77% | -10.83% | -25.84% | -48.96% | 9.73% | 54.74% | -20.51% | 96.37% |
Correlation
The correlation between NFLX and BABA is 0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.03 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.13 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.26 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.33 |
Correlation (All Time) Calculated using the full available price history since Sep 19, 2014 | 0.34 |
Over the past year, the correlation between NFLX and BABA has dropped to 0.03 - well below their long-term average of 0.34, suggesting their price drivers have been diverging.
Fundamentals
NFLX:
$313.27B
BABA:
$253.49B
NFLX:
$3.09
BABA:
CN¥33.90
NFLX:
23.58
BABA:
20.96
NFLX:
0.93
BABA:
0.94
NFLX:
6.72
BABA:
2.11
NFLX:
10.06
BABA:
1.62
NFLX:
$46.89B
BABA:
CN¥811.51B
NFLX:
$22.99B
BABA:
CN¥332.88B
NFLX:
$26.91B
BABA:
CN¥112.44B
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Return for Risk
NFLX vs. BABA — Risk / Return Rank
NFLX
BABA
NFLX vs. BABA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Netflix, Inc. (NFLX) and Alibaba Group Holding Limited (BABA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| NFLX | BABA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.07 | ||
| Sortino ratioReturn per unit of downside risk | -1.93 | ||
| Omega ratioGain probability vs. loss probability | 0.77 | 1.01 | -0.24 |
| Calmar ratioReturn relative to maximum drawdown | -0.90 | -0.14 | -0.76 |
| Martin ratioReturn relative to average drawdown | -1.58 | -0.31 | -1.27 |
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Drawdowns
NFLX vs. BABA - Drawdown Comparison
The maximum NFLX drawdown since its inception was -81.99%, roughly equal to the maximum BABA drawdown of -80.09%. Use the drawdown chart below to compare losses from any high point for NFLX and BABA.
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Drawdown Indicators
| NFLX | BABA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -81.99% | -80.09% | -1.90% |
Max Drawdown (1Y)Largest decline over 1 year | -45.58% | -44.05% | -1.53% |
Max Drawdown (3Y)Largest decline over 3 years | -45.58% | -44.05% | -1.53% |
Max Drawdown (5Y)Largest decline over 5 years | -75.95% | -72.48% | -3.47% |
Max Drawdown (10Y)Largest decline over 10 years | -75.95% | -80.09% | +4.14% |
Current DrawdownCurrent decline from peak | -45.58% | -64.83% | +19.25% |
Average DrawdownAverage peak-to-trough decline | -24.92% | -37.60% | +12.68% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 25.88% | 20.46% | +5.42% |
Volatility
NFLX vs. BABA - Volatility Comparison
Netflix, Inc. (NFLX) and Alibaba Group Holding Limited (BABA) have volatilities of 8.27% and 8.04%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| NFLX | BABA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.27% | 8.04% | +0.23% |
Volatility (6M)Calculated over the trailing 6-month period | 25.53% | 29.22% | -3.69% |
Volatility (1Y)Calculated over the trailing 1-year period | 33.86% | 43.84% | -9.98% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 43.23% | 51.46% | -8.23% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 41.56% | 43.42% | -1.86% |
Dividends
NFLX vs. BABA - Dividend Comparison
NFLX has not paid dividends to shareholders, while BABA's dividend yield for the trailing twelve months is around 1.00%.
| Position | TTM | 2025 | 2024 | 2023 |
|---|---|---|---|---|
BABA Alibaba Group Holding Limited | 1.00% | 1.36% | 1.96% | 1.29% |
NFLX Netflix, Inc. | 0.00% | 0.00% | 0.00% | 0.00% |
Financials
NFLX vs. BABA - Financials Comparison
This section allows you to compare key financial metrics between Netflix, Inc. and Alibaba Group Holding Limited. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
NFLX vs. BABA - Profitability Comparison
NFLX - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Netflix, Inc. reported a gross profit of 6.36B and revenue of 12.25B. Therefore, the gross margin over that period was 51.9%.
BABA - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Alibaba Group Holding Limited reported a gross profit of 11.75B and revenue of 35.15B. Therefore, the gross margin over that period was 33.4%.
NFLX - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Netflix, Inc. reported an operating income of 3.96B and revenue of 12.25B, resulting in an operating margin of 32.3%.
BABA - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Alibaba Group Holding Limited reported an operating income of -135.47M and revenue of 35.15B, resulting in an operating margin of -0.4%.
NFLX - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Netflix, Inc. reported a net income of 5.28B and revenue of 12.25B, resulting in a net margin of 43.1%.
BABA - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Alibaba Group Holding Limited reported a net income of 3.69B and revenue of 35.15B, resulting in a net margin of 10.5%.
Frequently Asked Questions
NFLX and BABA have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
NFLX has higher volatility (8.27%) compared to BABA (8.04%). In terms of maximum drawdown, NFLX dropped -81.99% vs BABA's -80.09%.
BABA currently has the higher Sharpe Ratio (-0.14 vs -1.21), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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