Despite stock market volatility due to concerns over the supply chain crisis and rising inflation, we think it could be wise to invest in quality FAANG stocks because they are expected to generate steady returns in the long run. Both Alphabet (NASDAQ:GOOGL) and Netflix (NASDAQ:NFLX) should generate stable returns, dodging short-term market fluctuations. But which of these two stocks is a better buy now? Read more to find out.Alphabet Inc. (GOOGL) provides online advertising services. The company offers performance and brand advertising services. It operates through Google Services, Google Cloud, and Other Bets segments. In comparison, Netflix, Inc. (NFLX) provides entertainment services. It offers TV series, documentaries, and feature films across various genres and languages. The company has approximately 204 million paid members in 190 countries.
Even though global supply chain constraints and high inflation could mar the technology industry’s growth in the near term, FAANG stocks are again attracting attention after reporting strong third-quarter results. The Federal Reserve’s decision to keep benchmark interest rates unchanged should act as a growth catalyst. Furthermore, increasing demand for advanced tech products and services amid the accelerating digital transformation of several businesses should keep driving the technology industry's growth. According to GoRemotely, the U.S. tech industry is expected to reach $5 trillion by the end of 2021.
NFLX’s shares have gained 29.2% in price over the past three months, while GOOGL has returned 9.7%. However, GOOGL’s 44.4% gains over the past nine months are significantly higher than NFLX’s 21% returns. And GOOGL is the clear winner with 69.2% gains versus NFLX’s 23.6% returns in terms of year-to-date performance.