HHow much a stock’s price changes over time is important to most investors, as price performance can both impact your investment portfolio and help you compare investment results between sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and stocks popular with consumers.
What if you invested in Netflix (NFLX) ten years ago? It might not have been easy to hold onto NFLX all this time, but if it was, how much would your investment be worth today?
Netflix Business Detail
With that in mind, let’s take a look at the main business drivers for Netflix.
Netflix is ââconsidered a pioneer in the field of streaming. The company has grown from a small DVD rental provider to a dominant streaming service provider, thanks to its large content portfolio and a strengthened international footprint. At the end of the fourth quarter of 2020, the company had 203.66 million paying subscribers worldwide.
Netflix has spent aggressively to build its original show portfolio. This allows it to maintain its leadership position despite the launch of new services like Disney + and Apple TV + as well as existing services like Amazon prime video.
Netflix streams movies, TV shows, and documentaries in a wide variety of genres and languages. Subscribers, national and international, can watch them on a multitude of Internet-connected devices, including TVs, computers and mobile devices.
The Los Gatos, Calif., Based company reported 2020 revenue of $ 25 billion.
Starting in Q4 2019, Netflix began disclosing revenue and membership data by region: Asia Pacific (APAC); Europe, Middle East and Africa (EMEA); Latin America (LATAM); and the United States and Canada (UCAN).
UCAN accounted for 45.8% of total revenue in 2020. At the end of the fourth quarter of 2020, the company had 73.94 million paying subscribers in the region.
The EMEA region accounted for 31.1% of total revenue in 2020. At the end of the fourth quarter of 2020, the company had 66.70 million paying subscribers in the region.
LATAM contributed 12.6% of total revenue in 2020. The company had 37.54 million paying subscribers in the region at the end of the fourth quarter of 2020.
APAC accounted for 9.5% of total revenue in 2020. The company had 25.49 million paying subscribers in the region at the end of the fourth quarter of 2020.
In the home DVD segment, Netflix delivers DVDs through the US Postal Service from distribution centers in major US cities. DVD segment revenue was $ 0.2 billion in 2020.
Anyone can invest, but building a successful investment portfolio requires a combination of several elements: research, patience, and a little bit of risk. So if you had invested in Netflix ten years ago, you are probably feeling pretty good about your investment today.
An investment of $ 1,000 made in October 2011 would be worth $ 36,300.12, or a gain of 3,530.01%, as of October 7, 2021, according to our calculations. This yield excludes dividends but includes price appreciation.
Compare that to the S&P 500’s 274.56% rally and the 3.68% gold return over the same time period.
Analysts are also forecasting more hikes for NFLX.
Netflix dominates the streaming space, with its diverse content portfolio, which is attributable to heavy investments in the production and distribution of localized foreign language content. The company plans to release at least one new original film every week in 2021. User-friendly features like Downloads For You are key positives. The launch of low-cost mobile plans has the potential to expand Netflix’s subscriber base in Asia Pacific. Additionally, a strong content roster and a resumption of production should help Netflix’s outlook in Q3 2021. However, growing competition from Apple, Amazon, HBO Max, Disney +, and Peacock is a major hurdle. Netflix’s leveraged track record and higher streaming obligation is also a concern. Notably, shares of Netflix have underperformed the industry year to date.
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Netflix, Inc. (NFLX): Free Stock Analysis Report
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