Goldman Sachs advised clients to invest in high-growth stocks like Netflix Inc. (NFLX) and Nvidia Corp. (NVDA) in 2018 in a note Monday, saying that rising interest rates will depress earnings growth and in turn place a premium on company valuations.

"The majority of the recent market rally has been driven by higher earnings rather than valuation expansion. Going forward, we expect growth to continue to drive S&P 500 stock returns. We expect that the prospect of 4 Fed rate hikes in 2018 will result in a forward P/E contraction," the firm said in a note. 

The firm highlighted companies that allocate 90% of cash flow from operations to fund growth initiatives. 

Volkswagen (VLKAY) was the top research and development spender in 2016, according to Statista, spending $13.2 billion, followed by Samsung Electronics Co. (SSNLF) ($12.7 billion) and Amazon.com Inc. (AMZN) ($12.5 billion).

Netflix is notorious for its content budget. The company announced last year that it plans to spend $6 billion in 2017 alone on new shows. The only other media outlet to outspend Netflix is Walt Disney Co.'s (DIS) ESPN channel, which spent $7.3 billion on content in 2016. 

Netflix stock traded down 0.85% to $169.95 midday Monday. Nvidia shares were up over 5% to $164.66.

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