Should You Buy Amazon Stock Before Dec. 19?

Amazon (AMZN 1.30%) is one of the most recognized brands on the planet. Between its online e-commerce platform and its heavy influence in the cloud computing landscape through Amazon Web Services (AWS), Amazon has evolved into a behemoth in the technology sector.

However, one area where I personally feel Amazon lags is streaming. Sure, the company has invested heavily in its Prime Video service -- creating several original television series and movies boasting some of Hollywood's biggest stars. But even so, I simply haven't been captivated by Amazon's foray into entertainment...that is, until now.

On Dec. 19, Amazon plans to release an original series called Beast Games -- an obstacle course-style reality show featuring YouTube's biggest star, MrBeast (whose real name is Jimmy Donaldson).

I think this is a game-changing opportunity for Amazon and working with MrBeast could be a major tailwind for the company.

How is Amazon working with MrBeast?

If you've never heard of MrBeast, here's a quick rundown: The 26 year old is a social media sensation, boasting more than 330 million subscribers on his main YouTube page.

The primary driver behind MrBeast's huge following? Money. Pretty much all of MrBeast's videos are derivative of one another -- he creates incredibly detailed obstacle courses on which he invites fans of his channel to compete for cash prizes. Sometimes he even invites celebrities to join in on the fun. In fact, his latest video (which received 74 million views in just two days) included appearances from popular athletes including Bryce Harper, Tom Brady, Cristiano Ronaldo, Noah Lyles, and Bryson DeChambeau.

Beast Games is essentially a mass-produced version of a typical MrBeast video. When it premiers later this month, spectators will watch 1,000 contestants compete in a series of challenges for a chance to win a $5 million prize.

Did Amazon just leapfrog Netflix?

During the past couple of years, Donaldson has gone on some podcasts and more than hinted that he's attempted to partner with streaming king Netflix. While I cannot say with certainty how serious any negotiations were between Donaldson's social media empire and Netflix, it's clear that the streaming giant and YouTuber never reached a deal.

In all honesty, I find this pretty surprising. Netflix has made a splash in the entertainment realm in recent years -- inking deals with another popular YouTuber, Jake Paul, as well as multiple sports deals with the NFL and TKO Holdings Group.

What could a deal with MrBeast mean for Amazon?

I see the partnership with MrBeast as a major catalyst for Amazon.

According to Statista, Amazon Prime has 200 million subscribers globally. However, data suggests that the majority of Prime users reside in the U.S. -- which boasts 180 million Prime members. Moreover, BI Intelligence published a report suggesting that over 40% of Prime buyers were between 30 and 49 years old.

But according to Parrot Analytics, nearly half of MrBeast's audience is comprised of Gen Z viewers and roughly a quarter of his audience comes from millennials. To me, working with MrBeast opens up the door for Amazon to market its Prime subscription membership to younger demographics who are particularly keen on e-commerce to begin with. Furthermore, given Beast Games will be available for streaming in 240 countries, Amazon has a unique opportunity to broaden its reach with Prime outside of the U.S.

I think the deal with MrBeast is more than just an opportunity for Amazon to augment its streaming chops. Given Prime memberships are a subscription service, acquiring new users could lead to a stream of recurring revenue at a wide margin. Naturally, as more users become enmeshed in Amazon's ecosystem, the company has the ability cross-sell additional products and services as it leverages user data to learn more about these customer preferences.

I think now is a great opportunity to buy Amazon stock and prepare to hold on for the long run.