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Netflix is the second best-performing S&P 1500 stock of the decade
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Junior Member

2 posts 2 threads Joined: Dec 2019
12-24-2019, 02:50 AM -
Netflix started the decade with a subscription mail DVD service with 12 million subscribers paying $9 a month for the privilege. It ended the decade as the best performing stock of the whole period, with a more than 4,000 percent return, according to CNBC. If someone had invested $1 million in Netflix on Jan. 1 2010, it would be worth almost $43 million today. That’s a return of 4,181 percent, and it beats all other members of the S&P 500. The index as a whole is up 189 percent over the past decade.

Netflix has a market cap of almost $148 billion. Although the company makes a lot of money, it doesn’t seem to work like a regular operation in that it runs on a paper thin operating margin, and its cash flow is negative. Also, competition from Apple and Disney have forced Netflix to spend more on content to keep a hold on its audience. In addition, if you are in need of Cheap Netflix Premium Membership Account, you can visit our website z2u.com.

The stock’s meteoric rise has always perplexed those investors who concern themselves with fundamental financial metrics like profit and cash. The company runs on a thin — sometimes razor-thin — operating margin and has negative free cash flow, a reflection of how much it costs to buy and invest in the kinds of entertainment consumers want to watch. Furthermore, the ballooning roster of cash-rich competitors, ranging from Apple to Disney, is forcing Netflix to spend more on movies and TV shows to keep customers from canceling their membership.

Then again, the stock market going forward will likely look a lot different than it did over the past 10 years, for better or worse. “The fact that most of the biggest winners of the last 10 years weren’t large caps to begin with certainly doesn’t mean that large-cap stocks are a bad investment,” Bespoke said in its breakdown. “In the event that the next decade isn’t as good, large-cap stocks are likely to collectively provide a lot more stability than their small and micro-cap peers.”

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