Netflix Stock's Last Decade Was Spectacular. But What Will the Next Decade Look Like?
The streaming giant made patient shareholders a lot of money. But can it keep compounding from here?
Overview
On July 18, 2016 (about ten years ago to the day), Netflix (NASDAQ: NFLX) shares closed at a split-adjusted $9.88. A $10,000 investment at that price would have bought about 1,010 shares, and with the stock at about $68 as of this writing, that stake would be worth about $68,500 today. That works out to a compound annual return of about 21%. The same $10,000 in the S&P 500 (SNPINDEX: ^GSPC) would have grown to roughly $35,000, before dividends.
That return wasn't earned comfortably, though. Holding meant sitting through some ugly weeks, including that very one: the day after Netflix's second-quarter 2016 report showed subscriber growth coming in well below the company's own forecast, shares sank 13%.
Details
Anyone who bought into that plunge did even better, turning $10,000 into nearly $79,000.
Source
Originally published at www.fool.com.