What would it be worth if you invested $1000 in Netflix stock ten years ago?
If you had invested in Netflix ten years ago, you're probably feeling pretty good about your investment today. According to our calculations, a $1000 investment made in February 2014 would be worth $9,138.15, or a gain of 813.81%, as of February 12, 2024, and this return excludes dividends but includes price increases.
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.
Further, it is now a much bigger company, which may limit its upside potential. Despite these factors, Netflix remains an excellent long-term bet for investors, and the company once again demonstrated its potential during its latest quarterly update.
In 2030, the NetFlix stock will reach $ 2,652.58 if it maintains its current 10-year average growth rate. If this NetFlix stock prediction for 2030 materializes, NFLX stock will grow 377.84% from its current price.
The closing price for Netflix (NFLX) in 2014 was $48.80, on December 31, 2014. It was down 6.9% for the year. The latest price is $565.24.
Which brings us to what you would have today if you had invested $1,000 in Netflix stock 20 years ago. First things first, however: if you purchased $1,000 worth of NFLX stock in early November 2003 and sold it at its November 2021 peak, you would have grossed nearly $158,000.
Fair Value Estimate for Netflix
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 posted its first profit in 2003, earning $6.5 million on revenues of $272 million; by 2004, profit had increased to $49 million on over $500 million in revenues. In 2005, 35,000 different films were available, and Netflix shipped 1 million DVDs out every day.
Average Price Target
Based on 40 Wall Street analysts offering 12 month price targets for Netflix in the last 3 months. The average price target is $637.29 with a high forecast of $765.00 and a low forecast of $425.00. The average price target represents a 3.20% change from the last price of $617.52.
The new Netflix -- better than ever
Revenue is still growing (up 15% year over year in Q1 2024), profit margins are still rising (operating margin outlook for 2024 increased from 24% to 25%), and big share repurchases just began in earnest in recent quarters (which boosts earnings-per-share growth over time).
What will Netflix stock be worth in 10 years?
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.
Netflix Stock Forecast
The 32 analysts with 12-month price forecasts for Netflix stock have an average target of 623.56, with a low estimate of 370 and a high estimate of 800. The average target predicts an increase of 7.93% from the current stock price of 577.75.
Netflix (NASDAQ: NFLX) is owned by 81.26% institutional shareholders, 6.44% Netflix insiders, and 12.30% retail investors. Rick Kimball is the largest individual Netflix shareholder, owning 8.01M shares representing 1.86% of the company. Rick Kimball's Netflix shares are currently valued at $4.45B.
- The all-time high Netflix stock closing price was 691.69 on November 17, 2021.
- The Netflix 52-week high stock price is 639.00, which is 13.9% above the current share price.
| Year | Mid-Year | Year-End |
|---|---|---|
| 2027 | $1,015 | $1,079 |
| 2028 | $1,110 | $1,210 |
| 2029 | $1,309 | $1,345 |
| 2030 | $1,438 | $1,468 |
Netflix has a market cap or net worth of $241.87 billion as of April 26, 2024. Its market cap has increased by 66.93% in one year.
Thanks to a higher membership base and operational discipline, profits for Netflix skyrocketed. The company had a full-year operating margin of 21% in 2023, up meaningfully from its 18% margin in 2022. Moreover, its free cash flow surged from $1.6 billion in 2022 to a whopping $6.9 billion in 2023.
Shares of streaming video giant Netflix (NASDAQ: NFLX) jumped 7.9% in the afternoon session after the company reported fourth quarter results that exceeded Wall Street's revenue expectations with strong user growth. The 13.1 million net adds from last quarter were well above expectations of 8.8 million.
On May 23, 2002, Netflix's stock began trading on the Nasdaq. Its stock was first sold at an initial public offering (IPO) price of $15 per share.
Netflix (NASDAQ: NFLX) does not pay a dividend.
Is Netflix in debt?
What Is Netflix's Debt? As you can see below, Netflix had US$14.5b of debt, at December 2023, which is about the same as the year before. You can click the chart for greater detail. However, it does have US$7.14b in cash offsetting this, leading to net debt of about US$7.41b.
“Kibble.” Believe it or not, “Kibble” is exactly what Netflix co-founders Marc Randolph and Reed Hastings originally called their company before ultimately — and understandably — switching to “Netflix” a short while later.
Wilmot Reed Hastings Jr.
(born October 8, 1960) is an American billionaire businessman. He is the co-founder and executive chairman of Netflix, and currently sits on a number of boards and non-profit organizations.
It's the leader in the industry, it still has huge growth potential, and it is seeing profitability expand. Investors who have a long-term mindset should consider starting a position in Netflix today.
There is also an issue about its overdependence on a small number of content. Competition and Market Saturation: Another disadvantage of Netflix stock is that its drastic growth might have plateaued due to the existence of other streaming services from Amazon, Apple, The Walt Disney Company, and HBO.
