Core News Facts
Meta Platforms (NASDAQ: META) reported a fourth-quarter revenue of $59.9 billion, marking a 24% year-over-year increase, and projects first-quarter revenue between $53.5 billion and $56.5 billion, implying approximately 30% growth year-over-year. In contrast, Netflix (NASDAQ: NFLX) achieved fourth-quarter revenue of $12.1 billion, a 17.6% increase, but is forecasting a deceleration in growth for 2026 with projected revenues of $50.7 billion to $51.7 billion, signaling only 12% to 14% growth.
Both companies are experiencing declines in their stock performance thus far in 2026, with Netflix down around 17% year-to-date, while Meta’s performance has been more stable. Notably, Meta is increasing its capital expenditures significantly, forecasting $115 billion to $135 billion in 2026, largely aimed at advancing its AI capabilities, which CEO Mark Zuckerberg identified as critical for future growth.
Meta’s price-to-earnings ratio stands at approximately 27, compared to Netflix’s 30. Analysts suggest that while both stocks trade at premium valuations, Meta’s faster growth and substantial investment in AI make it a more attractive buy at present.
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