Netflix (NFLX) has become a titan of video-on-demand since pivoting to online streaming services back in 2007. Today, a $10,000 investment during the NFLX IPO would be worth $4,101,881.
The Evolution of Netflix: A company that has stayed on the bleeding edge of technological trends since the dot-com bubble
Netflix (NFLX) was founded in 1997 during the dot-com bubble, enabling its customers to rent movies from a vast online catalogue. The company was designed to offer traditional movie-renting services to a broader base of customers, without being limited by physical location in any way.
From the beginning, Netflix existed on the bleeding edge of digital progress — it made renting videos more convenient for the end-user, who could simply browse the internet from the comfort of their own home and have nearly any movie delivered to their doorstep.
However, the dot-com bubble burst in the year 2000, and Netflix experienced a rapid decline in sales. The company managed to stay afloat and launched its IPO in 2002. By this time, sales had picked up once again and Netflix looked ready to challenge market leaders in the video rental industry.
Netflix total members, via Nasdaq
By 2007, the internet had been adopted en masse. This was a time where MySpace, Bebo, and Facebook began to connect people around the world like never before. Improvements in broadband speed and interconnectivity gave Netflix a platform to expand, and the company began to offer online streaming services to its existing user base.
Since that moment, Netflix has grown exponentially. As of today, Netflix is the market leader for streaming engagement, even premiering several top-performing TV series under the ‘Netflix Originals’ branding. In 2023, the company now has 238 million paid memberships, up from just 7.5 million in 2007.
NFLX takes off post-2007, highly profitable as of Q2 2023
The NFLX stock price began to take off after the company pivoted to online streaming. From the beginning of 2007 to all-time high in 2021, NFLX rose a total of 20,186%. This followed a series of all-time highs that culminated in the tech bubble of 2021, prior to a major retrace during the 2022 bear market.
NFLX all-time stock price, via CoinCodex
NFLX has become one of the most recognizable online brands during the past 15 years. The company has a current market cap of $194.93 billion, and recently released its earnings report for the second quarter of 2023 — the report revealed a quarterly revenue figure of $8.52 billion, outperforming Wall Street’s EPS expectations for the seventh consecutive quarter.
The recent earnings report shows just how successful the Netflix business model has become. The company is outperforming its annual target of 18-20% profit
1-Year NFLX price prediction, via CoinCodex
How much would a $10,000 investment in NFLX during its IPO be worth today?
The Netflix IPO in 2002 offered NFLX stock at the price of $15. As a result, a $10,000 investment at this time will have been worth 666 shares. However, Netflix has initiated stock splits on two separate occasions: the first in 2004, was a 2-for-1 split; the second, in 2015, was a 7-for-1 split.
For IPO investors, those 666 shares will have become 9,324 after the stock splits. This means that a $10,000 investment during the NFLX IPO would now be worth a whopping $4,101,441 at the current price of $439.88.
Would you take the profits, or wait for the next all-time high? You can read our recent article about the algorithm’s 1-year price prediction for Netflix to learn more (hint: it might be a good idea to keep hold of the stock!)
Source: https://coincodex.com/article/31963/heres-how-much-a-10000-investment-in-netflix-stock-nasdaqnflx-in-2002-is-worth-today/