How Rich Would You Be Today Had You Invested $1000 in Netflix in 2007?
Streaming platforms have recently gained a lot of traction, with the demand for online content being ever on the rise. Netflix seems to be the default leader of the pack, with the online community coining up such phrases as “Netflix and chill”, meaning hanging out with someone while streaming something.
The phrase is still used even when the streaming service to be used isn’t Netflix. Talk of creating an undeniable niche! No wonder analysts are looking forward to seeing how Disney’s Disney+ will compete with Netflix. Will it poach its customers? Will it flop, given Disney’s history in digital platforms? We are yet to find out.
With competition being stiff in the market, we’ve all got our eyes on Netflix, whose stock fell over 1% last week. Still, investing in the network would be a very smart financial decision, as those who did so when Netflix first started out know now.
The streaming platform came into being in early 2007. Had you acquired a $1,000 stake mid-January that year, your investment would have been worth $110,000 and then some by 16th April this year, going by calculations by CNBC. That’s about 10,000% in profits!! What a return! And this is considering that in the same time frame, the S&P 500 peaked at a little over 100%.
Despite the slight drop in stocks last week, the network had its quarterly revenue to smile about, seeing as it surpassed all estimates. And as you and I can guess, the shares are already up by now – and by 34% at that.
Concerning new competition, analysts, particularly from KeyBank, doubt whether the introduction of other platforms in the market will pose a significant threat to Netflix. According to them, the platform’s position is beyond safe. Are they that good businesswise? Because in the entertainment world you bet they are!
Deutsche Bank plans to invest more in Netflix, and has secured plans to buy more shares in the network. According to Bryan Kraft, an analyst at the bank, Netflix is all but a magnet, attracting different content and all manner of talent. Consequently, consumers view it as the first destination when looking for something to watch, making it part of society’s culture.
This way, people spend hours on end streaming their products, seemingly being “held captive” by the platform. All of this culminates to significant profits, ones that put Netflix well ahead of its competitors.
As of February this year, the streaming service boasted of 148 million subscribers, and the prediction is that the number will rise to 335 million in a decade.
Disney+, on the other hand, hopes to have reached at least 60 million subscribers by 2024, after it is launched in November this year. Will Netflix ever be within reach?
And although many are way over the moon concerning Netflix’s market share, Carter Worth, another analyst insists that the service should tread lightly.
That their shares dropped soon after Disney announced they would introduce a similar streaming platform is telling, according to Worth. The fact that Disney+ will also be cheaper should be a cause for worry. But let’s see how all this unfolds.
More in Investments
Rapper Kanye West Is Expanding His Real Estate Holdings In The Unlikeliest Of Places–Check Out His New Purchase Here
Kanye West is best known for his music and clothing business ventures. But it looks like the 42-year-old rapper is really...April 17, 2020
Target and Disney Forge an Exciting Partnership and We Didn’t See This Coming!
For decades now, the world has enjoyed the magic that is Walt Disney. Who can say that they haven’t interacted with...April 17, 2020
Millionaires of the Wizarding World–These Are The Richest Actors Who Played Professors In The Harry Potter Film Franchise
There’s no doubt that the Harry Potter films and books have become a global phenomenon. Years after the story has been...April 17, 2020
These Common Mistakes Are Ruining Your Chances of a Comfortable Retirement
After being committed to your workplace for a number of years, you unconsciously begin to look forward to retiring. You must...April 17, 2020
Why Social Security Will Go Up in 2019 And How You Can Prepare for It
Despite the expected rise in Medicare Part B premiums, a lot of retired workers will access checks by January next year....April 16, 2020
Are You a Financially Struggling Millennial? You Can Now Work For a Brighter Financial Future Today
Millennials, or those born in the years 1981 to 1996, now comprise one of the country’s most powerful financial demographics. They are...April 15, 2020
Here’s How You Can Stay On Top Of Your Personal Finances While Also Running Your Own Business
Everyone will benefit from managing their personal finances more closely. However, it’s still worth acknowledging that business owners tend to have...April 15, 2020
BEST Investment Tips to Help You Achieve Your Retirement Goal
Investment has a top spot on the list of expert-suggested ways of increasing wealth, establishing solid future fallback plans and saving...April 15, 2020
This is The Amazing Story Behind The Rise, Downfall, & Eventual Comeback of Iceland’s Only Billionaire
It’s no secret that the extremely wealthy lead very interesting lives. From the way they built their large fortune to the...April 15, 2020