Netflix, Inc. also referred to as just Netflix, is a video streaming giant that provides more than 167 million users around the globe with syndicated shows along with original shows as well as movies. Netflix started from humble beginnings as a TV show delivery service in 1997, with it going public on May 23, 2002. Netflix has come an exceptionally long way and killed one of its largest competitors, Blockbuster Entertainment.
From 2010 to 2019, Netflix had grown to become the best-performing stock on the S&P 500. At the time of the IPO, Netflix shares sold for 215.78 ZAR ($15) and as of April 12, their value had risen to 552.78, which already shows a growth of 156.18%.
If you had invested 10,000 ZAR on May 23, 2003 when Netflix went public, your investment without dividends reinvested would amount to 37,564.62 ZAR, indicating a total percentage return of 275.65% at a compound annual growth rate of 7.27%.
Netflix experienced two stock splits, which would affect investment in the following ways if investors had decided to keep their stocks through the splits:
- During 2004, Netflix issued a two-for-one stock split, so the 46 shares that you purchased would have doubled to 92 shares.
- During 2015, Netflix reported its quarterly earnings, and its shares made a new all-time high. However, another stock split was announced, a seven-for-one stock split and the shares that you purchased in 2003 would have bene multiplied by seven, thus 644 shares.
Netflix has been in operation for the past 18 years and it made its stock market debut, becoming a part of the elite FANG stocks. To this day, Netflix remains as one of the main streaming services in the world, becoming more widespread as more people gain access to internet across the globe.