Better Buy: Netflix vs. Alphabet

Netflix (NASDAQ: NFLX) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), the parent company of Google, both belong to the "FAANG" cohort of top U.S. tech companies, alongside Facebook, Apple, and Amazon. Like those other companies, Netflix and Alphabet disrupted older markets and changed people's habits.

Netflix disrupted the video rental and pay TV markets by transforming its mail-based DVD rental service into a streaming platform. Google's core platform become synonymous with online searches, while products like YouTube, Gmail, Android, and Chrome all dominated their respective markets.

Image source: Getty Images.

Over the past five years, Netflix's stock has rallied nearly 400% as Alphabet's stock has risen over 130%. Let's see why the former outperformed the latter by such a wide margin, and whether or not that trend will continue.

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Source Fool.com