Netflix is scheduled to report third-quarter results after the market closes on Thursday, helping the streaming giant kick off its latest earnings season. The company’s stock price has been steadily rising since the beginning of the year.
Netflix stock closed October 16th at $702. The stock is up more than 44% since the beginning of the year.
In recent quarters, streaming services’ stocks have benefited from a crackdown on password sharing, a push into live sports, and the rollout of cheaper ad-supported tiers, with monthly active user numbers around the world increasing as of May 15. Netflix reports that it has reached 40 million people. . Overall, the streamer had 270 million total subscribers as of that date.
But this earnings report may be one of the last times investors will receive regular updates on Netflix’s membership numbers.
In April, the company announced that starting in 2025, it would no longer provide quarterly updates on membership numbers and average revenue per user.
“This change focuses on the key metrics that we believe are most important to our business,” Netflix co-CEO Gregory Peters said during the company’s 2024 Q1 earnings call on April 18. “I’m really motivated by wanting to guess.” We will provide regular updates as we grow and reach certain key milestones, but they are not part of our regular reporting. ”
How much is investing in Netflix worth?
Netflix began trading on May 23, 2002, and the company’s initial public offering price was $15 per share. Since then, Netflix’s stock price has soared along with the popularity of the streaming service.
CNBC calculated how much a $1,000 investment in Netflix one, five or 10 years ago, and 22 years ago when the company went public, would be worth today.
CNBC’s calculations are based on Netflix’s October 16 closing price and do not take into account potential stock price fluctuations after the company’s latest quarterly earnings report.
If you invested 1 year ago
Percent change: 95% Total as of October 16: $1,946
If I had invested 5 years ago
Percent change: 145% Total as of October 16: $2,452
If I had invested 10 years ago
Percent change: 1,259% Total as of October 16: $13,586
If you invested in Netflix when it went public in May 2002
Percent change: 65,420% Total as of October 16: $655,201
Passive investment strategies recommended by most financial experts
Remember that no matter how well a company performs in the short term, it is not necessarily an indication of how well it will do in the long term. A variety of events can cause sudden changes in stock prices, including new government regulations, natural disasters, and changes in investor sentiment.
Many financial experts recommend more passive strategies, such as investing in low-cost index funds, rather than manually selecting individual stocks.
First, index funds tend to have lower costs than actively managed ones. That’s because they only track underlying market indexes, whereas actively managed funds often employ teams of high-priced managers and analysts who selectively trade securities.
Additionally, this type of fund can be an easy way to diversify your portfolio. It aims to mirror market indexes like the S&P 500, so your investment funds are spread across a number of large companies such as Apple, Nvidia, and Walmart. Additionally, indexes like the S&P 500 span a variety of industries, reducing the risk that an economic downturn in a particular industry will affect the performance of the entire portfolio.
As of Oct. 16, the S&P 500 index is up about 34% from 12 months ago, according to CNBC calculations. Its value has increased by just over 95% since 2019, about 214% compared to a decade ago, and about 430% since 2002.
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