Despite the stock market’s volatility on concerns over supply chain disruptions and rising inflation, we think it could be wise to invest in quality FAANG stocks because they are expected to generate steady returns over the long term. Meta Platforms (FB; NASDAQ:) will generate steady returns and avoid short-term market volatility. Which stock is better to buy right now? Continue reading to learn more.
Meta Platforms, Inc., Menlo Park, Calif., designs products that allow users to communicate with family and friends via mobile phones, personal computers, virtual realities headsets, or in-home devices. It has two main segments: Family of Apps, and Facebook (NASDAQ 🙂 Reality Labs. In comparison, Los Gatos, Calif.-based Netflix, Inc. (NFLX) provides entertainment services. You can find TV series, documentary, and feature movies in many genres. Members can access streaming content via a variety of Internet-connected devices.

Even though global supply chain constraints, high inflation, and labor shortage could mar the technology industry’s growth in the near term, FAANG, which represents Meta (formerly known as Facebook), Amazon (NASDAQ:), Apple (NASDAQ:), Netflix, and Alphabet (NASDAQ:) (GOOG) (formerly known as Google), is gaining attention after reporting strong third-quarter results. Although the Federal Reserve has doubled its rate of tapering asset purchases, and is expecting three interest rate rises next year (inflation), high inflation and labor shortages could hinder the technology industry’s growth over the medium term, the benchmark rates should continue to remain stable for the time being and act as an economic catalyst. In addition, the growing demand for tech services and products should continue to drive the growth of the technology sector. GoRemotely predicts that the U.S. technology industry will reach $5 trillion in market value by 2021. Both FB as NFLX could benefit.

FB’s stock has gained 21.7% in price over the past year, while NFLX has returned 14.5%. Also, FB’s 24.3% gains over the past nine months are higher than NFLX’s 15.4% returns. And FB is the clear winner with 22.2% gains versus NFLX’s 10.6% returns in terms of year-to-date performance.

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