If You Invested $1000 in Netflix a Decade Ago, This is How Much It'd Be Worth Now (2024)
Zacks Equity Research
·4 min read
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also 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?
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 fourth quarter of 2023, the company had 260.28 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 44.5% of fourth-quarter 2023 revenues. At the end of the quarter, the company had 80.13 million paid subscribers in the region.
EMEA accounted for 31.5% of fourth-quarter 2023 revenues. Netflix had 88.81 million paid subscribers in the region at the end of the quarter.
LATAM contributed 13.1% of fourth-quarter 2023 revenues and had 46 million paid subscribers in the region at the end of the quarter.
APAC accounted for 10.9% of fourth-quarter 2023 revenues. The company had 45.34 million paid subscribers in the region at the end of the quarter.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Netflix ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in March 2014 would be worth $9,728.72, or a gain of 872.87%, as of March 4, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 176.27% and gold's return of 49.90% over the same time frame.
Looking ahead, analysts are expecting more upside for NFLX.
Netflix added 13.12 million paid subscribers globally in fourth-quarter 2023, with a rise of 1% in average revenue per subscription. The company attributed the robust top-line growth to its paid subscription-sharing offering (part of its password-sharing crackdown), recent price changes and the strength of its business in general. Netflix is expected to continue dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized and foreign-language content. Shares have outperformed the industry in the past six months. However, stiff competition in the streaming space from the likes of Apple, Amazon Prime Video, Disney+, Peaco*ck and Paramount+ is a headwind. NFLX’s leveraged balance sheet and a higher streaming obligation are concerns.
Over the past four weeks, shares have rallied 9.69%, and there have been 12 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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So, if you had invested in Netflix ten years ago, you're likely feeling pretty good about your investment today. A $1000 investment made in March 2014 would be worth $9,728.72, or a gain of 872.87%, as of March 4, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
17, according to CNBC's calculations. And if you had invested $1,000 in Netflix a decade ago, it would have ballooned by more than 654% to $7,543 as of Oct.
Netflix turned a corner on key metrics in 2023. The stock isn't cheap, but it shouldn't be given the company's strengths. Netflix still looks like a solid investment for the long term.
Total assets on the balance sheet as of December 2023 : $48.73 B. According to Netflix's latest financial reports the company's total assets are $48.73 B. A company's total assets is the sum of all current and non-current assets, such as inventories, cash and cash equivalents, properties and equipment.
However, as noted, things have turned south since then. Check out the above chart and you'll see that if you invested $1,000 in NFLX stock 20 years ago – and did not sell at the peak – today you would be sitting on not quite $139,000. That's still a terrific return, of course.
Shares in Netflix have slumped by 35% after it revealed a sharp drop in subscribers and warned millions more are set to quit the streaming service. It wiped more than $50bn off the firm's market value as experts warned it faced a struggle to get back on track.
Overall, Netflix Inc stock has a Value Grade of F, Growth Grade of A, Quality Grade of A, . Whether or not you should buy Netflix Inc stock will ultimately depend on your individual goals, risk tolerance and allocation.
In a positive sign, NFLX stock is trading above its 50-day moving average line. And it has an Accumulation/Distribution Rating of B+, indicating buying by institutional investors.
Revenue at Netflix rose 15% to $9.4bn in the three months to 31 March. Net income jumped 79% to $2.3bn over the same period, clearing analysts' expectations. Netflix, based in Los Gatos, California, pioneered the streaming revolution.
The stock's total value must multiply by nearly 5 before reaching a $1 trillion market cap -- an ambitious goal that calls for time and patience. A more reasonable, yet consistently market-beating, estimate suggests Netflix could reach a $564 million market cap by 2030 and $1 trillion in 2035.
TD Cowen's John Blackledge raised estimates for paid Q1 2024 net adds to 5.11 million (up from 3.6 million previously), reflecting Netflix's continued momentum in paid sharing. The analyst boosted his 12-month price target on the stock from to $600 to $725.
With its 2-star rating, we believe Netflix's stock is overvalued compared with our long-term fair value estimate of $425, which implies a multiple of 25 times our 2024 earnings per share forecast.
Netflix is a publicly traded company, so there is no one owner of Netflix. Instead, their shareholders and investors own the company based on the stakes they have in the company. Vanguard Group Inc. BlackRock Inc.
Hastings took on the role of executive chair of Netflix after stepping down as CEO in 2023. He has a net worth estimated at $4.1 billion, according to Forbes. Todd Spangler. "Reed Hastings grants $1.1 billion worth of Netflix stock to the Silicon Valley Community Foundation." Variety 01/29/2024.
Netflix has proven that customer satisfaction is a key factor in retaining and growing its customer base. Netflix has provided convenience, value, and quality to its subscribers by offering features such as no late fees, no ads, unlimited access, flexible cancellation, etc.
“If you had invested $10,000 in Netflix stock on August 1, 2003, 20 years later on August 1, 2023, you would have $4,386,200,” said Nancy D. Butler, a certified financial planner for more than 35 years and the owner of Above All Else, Success in Life and Business. That, however, is an unlikely scenario.
Introduction: My name is Nathanael Baumbach, I am a fantastic, nice, victorious, brave, healthy, cute, glorious person who loves writing and wants to share my knowledge and understanding with you.
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