Yahoo Finance If You Invested $1000 in Netflix a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Netflix (NFLX) ten years ago? It may not have been easy to hold on to NFLX for all that time, but if you did, how much would your investment be worth today?
Netflix's Business In-Depth
With that in mind, let's take a look at Netflix's main business drivers.
Netflix is considered a pioneer in the streaming space. The company evolved from a small DVD-rental provider to a dominant streaming service provider, courtesy of its wide-ranging content portfolio and a fortified international footprint. At the end of the first quarter of 2024, the company had 269.6 million paid subscribers globally.
Netflix has been spending aggressively on building its portfolio of original shows. This is helping the company sustain its leading position despite the launch of new services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video.
Netflix streams movies, television shows and documentaries across a wide variety of genres and languages. Domestic and international subscribers can watch them on a host of internet-connected devices, including television sets, computers, and mobile devices.
The Los Gatos, CA-based company reported revenues of $33.72 billion in 2023.
Beginning fourth-quarter 2019, Netflix started declaring revenues and membership data by regions — the Asia Pacific (APAC); Europe, Middle East & Africa (EMEA); Latin America (LATAM); and the United States and Canada (UCAN).
UCAN accounted for 45.1% of first-quarter 2024 revenues. At the end of the quarter, the company had 82.66 million paid subscribers in the region.
EMEA accounted for 31.6% of first-quarter 2024 revenues. Netflix had 91.73 million paid subscribers in the region at the end of the quarter.
LATAM contributed 12.4% of first-quarter 2024 revenues and had 47.72 million paid subscribers in the region at the end of the quarter.
APAC accounted for 10.9% of first-quarter 2024 revenues. The company had 47.5 million paid subscribers in the region at the end of the quarter.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Netflix, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in June 2014 would be worth $10,626.54, or a gain of 962.65%, as of June 6, 2024, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 175.92% and gold's return of 80.60% over the same time frame.
Going forward, analysts are expecting more upside for NFLX.
Netflix is benefiting from its growing subscriber base, thanks to a robust portfolio. Crackdown on password-sharing and the introduction of paid sharing in more than 100 countries, which represents over 80% of Netflix’s revenue base, is also expected to aid growth. Netflix’s diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized and foreign-language content, has been driving its growth prospects. Shares have outperformed the industry year to date. However, stiff competition in the streaming space from the likes of Apple, Amazon Prime Video, Disney+, Peacock and Paramount+ is a headwind. Netflix’s leveraged balance sheet and a higher streaming obligation are concerns. Additionally, unfavorable forex is expected to hurt operating income in the second quarter of 2024.
The stock is up 6.69% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 12 higher, for fiscal 2024. The consensus estimate has moved up as well.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
