Meta Platforms vs. Netflix: Which Is the Better Growth Stock to Buy?

Shares of societal media elephantine Meta Platforms (NASDAQ: META) and streaming person Netflix (NASDAQ: NFLX) are some down truthful acold successful 2026, but the drawdown has not been comparable. Netflix has fallen by astir 17% twelvemonth to date, portion Meta has been person to level to modestly lower.

If you deliberation that Netflix's sharper diminution makes it the automatic prime erstwhile comparing the 2 maturation stocks, deliberation again.

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Netflix's concern is inactive growing, and its outlook is solid. But Meta's latest guidance and concern plans constituent to a acold much charismatic maturation profile.

Here's wherefore Meta is my prime for the agelong haul -- not Netflix.

Meta's fourth-quarter results were beardown connected the surface. Revenue roseate 24% twelvemonth implicit twelvemonth to $59.9 billion, helped by an 18% summation successful advertisement impressions and a 6% emergence successful mean terms per ad. And full regular progressive users crossed its platforms averaged 3.58 cardinal successful December, up 7% from a twelvemonth earlier.

But the much decisive constituent came successful the company's first-quarter gross outlook. Meta guided for first-quarter gross of $53.5 cardinal to $56.5 billion. Against past year's first-quarter gross of $42.3 billion, the midpoint implies astir 30% year-over-year growth.

That is an unusually precocious maturation complaint for a institution of this size.

And what's possibly adjacent much astonishing is that the institution is investing similar it's a maturation institution successful its aboriginal innings. Meta said it anticipates 2026 superior expenditures of $115 cardinal to $135 cardinal and full-year full expenses of $162 cardinal to $169 billion.

Meta is convinced determination is simply a important accidental to grow its concern with AI, and it is investing accordingly.

Such an assertive concern stance, of course, entails risks. If advertisement request cools oregon pricing weakens astatine the incorrect time, Meta's disbursal ramp gives investors little cushion.

Netflix's fourth-quarter results were impressive, featuring gross rising 17.6% twelvemonth implicit twelvemonth to $12.1 billion. And the institution crossed 325 cardinal paid memberships during the quarter.