How much would you have if you invested $ 1,000 in Netflix 10 years ago
Hits keep coming for Netflix. The streaming video giant released a better-than-expected earnings report on Tuesday, beating Wall Street expectations for subscriber growth and revenue.
Netflix, whose recent show “Squid Game” became a global phenomenon and is said to have created $ 900 million in value for the company, saw its shares trade around $ 626 on Wednesday afternoon.
If you had invested $ 1,000 in Netflix on October 19, 2011 at a share price of $ 15.63, the market value of your shares would be $ 40,430 today, reflecting a return of over 3,900%, according to CNBC calculations. In contrast, a $ 1,000 investment in the S&P 500 Index would have generated a return of 356.8% over the same time period and would be worth approximately $ 4,568.
During the same period, Netflix’s market cap fell from $ 5.7 billion to $ 279 billion on Wednesday morning.
Netflix’s share price has risen alongside that of the company itself, moving from a popular entertainment service to a dominant streaming platform, active in more than 190 countries.
At the end of 2011, Netflix had 23.5 million subscribers. On Tuesday, the company revealed that it now has around 214 million paying subscribers and expects to add 8.5 million in the next quarter. Its closest competitor, Disney Plus, last reported 116 million subscribers.
Netflix launched its first original show, “House of Cards,” in 2013, and now boasts more than 6,000 original shows and movies. Earlier this year, the company said it plans to spend $ 17 billion on original content in fiscal 2021, co-CEO Reed Hastings saying on Tuesday that Netflix is in “uncharted territory” and has “so much content coming in Q4 that we’ve never had.”
Netflix is also venturing into new industries. On Tuesday, he told investors he had started to dabble in video games in some countries, although “this is only a start for this initiative.”
But Netflix’s success has not come without its setbacks. The streamer is currently under fire from some employees, as well as GLAAD and other LGBTQ rights groups, for a Dave Chapelle comedy special that has been criticized as transphobic. She recently fired an employee for allegedly information leaked on the special to Bloomberg.
With a number of employees plan a walkout In protest on Wednesday, co-CEO and chief content officer Ted Sarandos said in an interview with Variety that he had “mowed down” his response to employee concerns by not reacting with more “humanity.” but reiterated that the comedy special will remain on the platform.
Despite the strong growth in Netflix stocks, any individual stock can outperform or underperform and past performance does not predict future results. Make sure you research your options carefully before investing.
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