Meta Platforms vs. Netflix: Which Is the Better Growth Stock to Buy?
The Motley Fool
by newsfeedback@fool.com (Daniel Sparks)February 20, 2026
AI-Generated Deep Dive Summary
Meta Platforms (META) and Netflix (NFLX) have both seen their shares decline so far in 2026, but the drop in Netflix has been more significant, with its stock falling approximately 17% year-to-date compared to Meta's modest decline. While it might seem like Netflix’s sharper drop makes it an automatic choice for investors seeking growth stocks, the situation is more nuanced. Both companies are still growing, but their future prospects differ significantly.
Netflix continues to expand its subscriber base and solidify its position as a streaming leader, despite facing increased competition from other platforms. Its business model remains strong, with a focus on content creation and global expansion. However, Netflix’s stock performance has been weighed down by concerns over slowing growth rates and rising content costs, which have cast doubt on its ability to sustain high-growth levels in the long term.
In contrast, Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, has set a higher near-term growth bar. Its latest guidance highlights ambitious investment plans that aim to accelerate innovation across its product lineup, including AI-driven tools, virtual reality (VR) technologies, and improved advertising platforms. These initiatives position Meta as a potential leader in emerging tech trends, which could drive significant revenue growth over the next few years.
Investors evaluating these two growth stocks must weigh their respective strengths. While Netflix remains a dominant player in streaming, Meta’s aggressive investment strategy and innovation pipeline make it an attractive option for those looking for high-growth opportunities. The choice between the two ultimately depends on individual investment goals and risk tolerance, but Meta’s current trajectory suggests it may offer a more compelling long-term growth narrative.
For finance enthusiasts and investors, this comparison highlights the importance of analyzing not just past performance but also future growth potential and strategic direction. Both companies operate in dynamic industries with high growth ceilings, but their approaches to innovation and market expansion set them apart. As 2026 progresses, keeping an eye on these trends will be crucial for making informed investment decisions.
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Originally published on The Motley Fool on 2/20/2026