If You Invested $1,000 In Netflix 10 Years Ago, Here's How Much You'd Have Now
Netflix (NFLX) has become a household name not only in the U.S. but around the world. The company started as a humble DVD rental by mail service before later evolving to invent today's universe of online streaming. Now the Netflix streaming service is available to watch in nearly every country of the world but China.
It is no exaggeration to say that NFLX dramatically shifted the world of the entertainment industry in three decades. Netflix can claim credit for the pioneering and rise of movie streaming. Thanks to the company's revolution in on-demand, in-home entertainment, the way Hollywood makes television and film content changed forever.
Today's Netflix is a behemoth of the technology sector. The company boasts a market cap of over $373.435 billion, per Nasdaq. If you had believed in the company and taken a stake of $1,000 in NFLX only 10 years ago, today you would have a holding worth over $18,600. This would have given you money you really need to safely retire at age 50.
The story of Netflix's meteoric rise
Reed Hastings and Marc Randolph co-founded Netflix back in 1997. With a goal of delivering movie rentals over the Internet, the company started Netflix.com in 1998. Customers could choose from a library of DVD's to rent via the mail. By 1999, Netflix had added its fist subscription service that permitted customers to rent unlimited DVDs for one monthly membership subscription. In 2000, Netflix began offering recommendations based on member ratings that predicted choices. 2002 saw the IPO of Netflix at under $2 a share.
With the ability to stream Netflix's content introduced in 2007, the company dramatically shifted the way consumers access media in their homes. This revolutionary new streaming platform allowed subscribers to view any content in the Netflix library completely on demand. In 2009 the firm inked deals with important electronics companies putting Netflix on gaming consoles and smart TVs across the globe. By 2010, customers could enjoy their Netflix viewing on mobile devices. Netflix reached the EU in 2012, continuing its global conquest.
The last 10 years saw continued innovation for Netflix. Year 2013 saw the company introduce its first proprietary programming content. Series like "Orange is the New Black" and "House of Cards" emerged as popular hits. Consumers could access Netflix worldwide by 2016 as its exclusive offerings continued to grow. In the lockdown era of 2020's COVID-19 pandemic, Netflix watched its subscriber base catapult much higher.
Money invested in Netflix 10 years ago is worth a fortune today
Today's Netflix provides its own original and third party digital content to smart TVs, PCs, and electronic devices that include game consoles, tablets, Apple TV, Chromecast, and Roku. Netflix's stock price has increased astronomically alongside its phenomenal success. The streaming video on demand service dramatically rewarded investors who got onboard just 10 years ago.
Netflix stock opened at $47.35 per share on January 6, 2015 per Nasdaq. If you invested $1,000 in it then, you would have the equivalent of 21.12 shares. These NFLX shares closed at $881.05 on January 3, 2025. The $1,000 in Netflix shares from the beginning of 2015 are today worth $18,607.78.
It is a stellar return for having faith in the global dominance of online streaming. This gain represents a staggering 18.6 times return on your original investment. Had you held on to the NFLX shares for the decade, you would have enjoyed an average annual return of over 186%. It is more than if you had invested $1,000 in Facebook 12 years ago but less than if you invested $1,000 in Bitcoin 10 years ago.