If you invested $1,000 in Netflix's stock 10 years ago here’s how much your investment would have been in 2021

In the last 10 years, only a few stocks have doubled in price and delivered much return on investment like Netflix.

The leading streaming company has given its investors positive returns with every year being a hit. It has reliably released new seasons of shows including “Queer Eye” and “Chef’s Table”, among others. Over the past decades, Netflix has successfully grown its user base from less than 50 million to 208 million.

The unfortunate events caused by the coronavirus pandemic led to 2020 being an unprofitable and unproductive year for many businesses and economies. While many businesses, especially small businesses suffered from the impact of the pandemic, companies such as Netflix thrived due to more people using their services during the countrywide lockdown. The company also recorded its highest number of new subscribers in the year.       

In its first-quarter earnings report, Netflix recorded $1.7 billion in profit but fell short of analysts’ expectation for subscriber growth as many economies begin to reopen. However, investors still see strong growth potentials in Netflix and expect it to regain its standing over the long term.

“While traditional media companies have one toe in the water and a glass-half-empty view of streaming, Netflix grabbed the bull by the horns and ran with it,” said Dan Ives, Wedbush Securities managing director. “Now, everyone is trying to play catchup in a game that has changed the media ecosystem forever.”

While the pandemic increased the profitability and productivity of certain units of the company, it also caused a delay in other units. For example, Netflix’s production unit was delayed by the pandemic which will result in a “lighter content slate in the first half of this year”, the company said in a letter to its shareholders. However, Netflix says it will continue producing content as it invests $17 billion into its movies and shows unit this year.

Shares of Netflix briefly dropped 7% after it releases results of its earnings report on Tuesday.

Netflix stock has seen an upward trajectory over the last decade so much that even a less than $1,000 investment in 2011 would still make a huge difference now. The stock has multiplied nearly fifteen times over the years.

If you bought Netflix shares worth $1,000 on April 20, 2011, your investment would be worth $15,252 now. The calculation is as of Tuesday’s 1,425% gain.

Netflix’s gain has significantly grown more than the S7P 500, which only grew 209% over the same period. It also beats growth rates of Apple and Google parent Alphabet Inc. at 1,134% and 767%, respectively over the same period. A $1,000 worth of investment in Alphabet’s stock 10 years ago would have grown to $12,339.

Netflix’s growth is also reflected in its market cap which grew to $243.4 billion from $13.4 billion in 2011. Its market cap is one of the biggest today in the industry, topping that of Twitter, Spotify, and Snap combined. Its growth is attributed to huge investments into its content library, and also other cutting-edge innovations.

Since 2011, Netflix has relied on external financing to fund its multi-billion-dollar content library through deal and big-budget projects. The company says it expects to the cash flow positive in the coming years.