Apple Is Near a Record. Netflix Is Down More Than Half. I'd Buy Only 1 of Them.

Key Points:

• Apple shares are near their all-time high at around $350, up about 29% in 2026, while Netflix shares are near a one-year low at about $62, down roughly 54% from their record close in June 2025.
• Netflix’s valuation appears cheaper with a price-to-earnings (P/E) ratio of about 17 based on 2027 forecasts, but its revenue growth is slowing, with quarterly increases dropping from 17.6% in late 2025 to an expected 11.5% in late 2026.
• Apple’s P/E ratio is higher at around 37, reflecting its premium valuation, but it benefits from a large installed base of over 2.5 billion active devices, a fast-growing services segment with high margins, and strong cash returns to shareholders through buybacks and dividends.
• Apple is beginning to monetize artificial intelligence with new Siri AI features and upcoming products like the HomeView device and smart glasses, alongside a new premium foldable iPhone model, suggesting potential for future growth beyond current hardware sales.
• While Netflix offers value at a lower price, Apple’s durable business model, expanding services, and AI-driven innovation make it the preferred investment, though a gradual build-up of position is advised given its higher valuation.