Meta Platforms vs. Netflix: The Best Growth Stock to Buy

It’s been a bumpy start to 2026 for social media powerhouse Meta Platforms (META +1.66%) and streaming giant Netflix (NFLX +2.17%), with both seeing their stocks take a hit. While Netflix has seen a sharper decline of about 17% year to date, Meta’s performance has been more stable, hovering around flat to slightly lower.

But before you jump to conclusions based on these figures, it’s important to dig a bit deeper. Despite its recent dip, Netflix is still on the up and up, with solid growth prospects. However, Meta’s latest outlook and investment strategy paint a more enticing picture for long-term investors.

In its fourth-quarter report, Meta revealed a revenue increase of 24% year over year, driven by growth in ad impressions and higher average ad prices. With a first-quarter revenue guidance suggesting around 30% year-over-year growth, Meta is showing impressive momentum for a company of its size.

Moreover, Meta’s ambitious investment plans, including significant spending on AI technology, point to a company with big growth ambitions. CEO Mark Zuckerberg highlighted a major acceleration in AI initiatives, signaling a strong commitment to expanding the business using cutting-edge technology.

On the other hand, Netflix’s revenue grew by 17.6% year over year in the fourth quarter, with the company reaching 325 million paid memberships. While these are solid numbers, Netflix’s forecast indicates a slowdown in growth, with a projected 12% to 14% year-over-year revenue increase in 2026.

At a glance, both companies have a relatively similar valuation, with Meta’s price-to-earnings ratio at around 27 and Netflix’s at around 30. However, the higher growth potential and innovative investment strategy of Meta make it a more appealing choice for those looking for long-term growth.

If you had to choose between Meta and Netflix as an investment, Meta seems to offer a more promising outlook. Of course, things could change if Netflix manages to pick up the pace in its 2026 growth or if Meta’s hefty investments don’t deliver the expected returns. So, keep an eye on how these two tech giants evolve in the coming months.