What would $1 000 invested in Netflix stock 10 years ago be worth now?
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.
Netflix is in good financial shape. It ended 2023 with a net debt-to-EBITDA ratio under 1.0, holding about $7 billion in cash and $14.5 billion in total debt. More importantly, we believe the company's years of cash burn are behind it, giving it a good cash cushion after funding its content budget.
Netflix stock price stood at $617.52
According to the latest long-term forecast, Netflix price will hit $800 by the end of 2024 and then $1000 by the end of 2025. Netflix will rise to $1100 within the year of 2026, $1200 in 2027, $1400 in 2028, $1500 in 2029, $1700 in 2030, $1800 in 2031 and $2000 in 2034.
In 2030, the NetFlix stock will reach $ 2,952.23 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.
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.
Following the announcement, the company's stock shot up more than 6 percent. If you had invested in Netflix in 2007, when it first began its streaming service, that investment could have paid off big time: A $1,000 investment would be worth more than $90,000 as of Jan. 15, according to CNBC calculations.
Is Netflix a good stock to buy? Netflix is a great stock for growth investors with a high risk tolerance. For more risk-averse investors, Netflix stock may not be the right choice due to its lofty valuation.
Currently, Netflix has a Zacks Rank #1 (Strong Buy) and a Growth Score of B, a combination that offers the best opportunities in the growth investing space. Its shares have already outperformed the broader S&P 500 in the year-to-date period (+19.8% versus +6.4%).
Checking Netflix's P/E Valuation
Netflix shares currently trade at 36.2X forward earnings which is well below a five-year high of 114.9X and a slight discount to the median of 49.7X. Plus, annual earnings are projected to soar 42% in fiscal 2024 to $17.05 per share compared to $12.03 a share last year.
Will Netflix stock go up in 2024?
Netflix (NFLX) is up over 25% in 2024 so far, continuing bullish momentum after a strong earnings call on Jan. 23.
- 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 4.1% above the current share price.
Current analyst estimates for 2024 are calling for earnings of $17.21 per share. That would give Netflix a valuation of a little over 35x forward full year earnings on a price-to-earnings basis.
Who owns Netflix? Netflix (NASDAQ: NFLX) is owned by 80.92% institutional shareholders, 6.41% Netflix insiders, and 12.67% retail investors. Rick Kimball is the largest individual Netflix shareholder, owning 8.01M shares representing 1.85% of the company. Rick Kimball's Netflix shares are currently valued at $5.04B.
Current analyst estimates for 2024 are calling for earnings of $17.21 per share. That would give Netflix a valuation of a little over 35x forward full year earnings on a price-to-earnings basis.
| Year | Prediction | Change |
|---|---|---|
| 2025 | $ 232.85 | 28.45% |
| 2026 | $ 299.10 | 64.99% |
| 2027 | $ 384.20 | 111.94% |
| 2028 | $ 493.50 | 172.23% |
If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Impressively, Netflix has grown EPS by 26% per year, compound, in the last three years.
On the stock market today, Netflix climbed 3.1% to close at 636.18. "Our positive investment view remains unchanged," Wlodarczak said in a client note. "Netflix has won the streaming wars and their continued strong subscriber/ARPU (average revenue per user) and free cash flow generation should drive the shares higher."
- The Vanguard Group – 36,260,284 Shares – 8.38% ...
- BlackRock – 29,970,188 Shares – 6.93% ...
- Fidelity Investments – 22,384,548 Shares – 5.17% ...
- State Street Corporation – 16,277,017 Shares – 3.76% ...
- T. ...
- Reed Hastings – 2,991,541 Shares – 0.67% ...
- Leslie J. ...
- David A.
So far, Netflix remains one of the only profitable major streaming services, and investors seem to feel good about the company's prospects: Netflix's stock is up 36% compared to one year ago, while Disney's stock fell 10%, and Warner Bros.
Has Netflix stock ever split?
In fact, Netflix has created so much value that management has opted for two stock splits -- one in 2004, and another in 2015 -- to ensure the stock remained accessible to smaller investors.
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.
Stock Price Forecast
The 32 analysts with 12-month price forecasts for Netflix stock have an average target of 578.44, with a low estimate of 333 and a high estimate of 765. The average target predicts a decrease of -6.87% from the current stock price of 621.12.
As of 2024-04-16, the Fair Value of Netflix Inc (NFLX) is 312.41 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 607.15 USD, the upside of Netflix Inc is -48.5%.
Last October, Netflix increased the price of the Basic plan from $9.99 to $11.99 per month in the U.S., and also hiked prices of the tier in the U.K. and France. Netflix hasn't announced specific plans to hike subscription prices in 2024, but execs have said rate increases are on the table.
