There are a few companies that took care of investors on the road Netflix (Nasdaq: nflx) He has. Since the company's initial assumption of the company in 2002, the shares rose, with 80,080 % increased (as of March 19). This means that if you invest a small amount of only $ 1250 at that time, you will sit on the balance of seven numbers today from this individual investment. This is an incredible result.
Today, the maximum Netflix market exceeds $ 400 billion. But the work is still on the radar for many investors looking to put some money to work in the long run.
If you bought this summit Stock flow Today, can you help you retire as a college? I think it is important to know what this company is distinct before you decide whether it should be in your wallet.
Investors need to understand the company scale. Netflix achieved revenue of $ 39 billion in 2024. This increased by 16 % on an annual basis and 609 % higher than a contract.
I calculated 302 million subscribers from December 31. Again, this main scale rapidly increased over the years. At the end of 2014, there were 57 million customers.
Perhaps no worker contributed to the impressive Netflix rise from The first engine feature. She managed to win members and develop revenues quickly because she was mainly competing against traditional cable TV and providing a superior experience. Of course, the competitive scene has turned, but the company is still at the forefront.
It is easy to be optimistic. According to data from NelsenThe broadcasting platform represents 8.2 % of the time to watch daily TV in the United States in February, only behind YouTube. The participation will remain strong, especially with new seasons of popular programs incredibly Squid gameand WednesdayAnd Strange things It comes out in 2025.
The company's monster's success in the broadcasting industry has become more clear in the past few years, especially since competing services have entered the market in an attempt to gain customers and expansion. This cannot be more clear when you look at ProfitabilitySomething excels Netflix these days.
It has such large revenues and the rule of subscribers that exploded. The company's operating margin moved from 13 % in 2019 to 27 % last year, as executive officials targeted 29 % in 2025. The ability to expand appear in front of our eyes directly.
The company runs a fixed -cost business model; Each additional user serves minimal Modern costsAs usually with digital services. In theory, content costs do not need to grow from year to year, at least in Lockstep with sales gains. Therefore, by adding more subscribers and increasing revenues, profits have risen. This trend has also been supported by high prices at times.
Over the next three years, the unanimous analyst's estimates call for the high magic profits of the share at an annual rate of 22.6 %. This is in line with the past three years.
As we mentioned earlier, Netflix was historically a great stock. This has now become a dominant media and entertainment company.
Unfortunately, the stocks are not cheap. Although it decreased by 9 % of its peak in February, it is trading with a price rate of 38.6. This is far from a deal, and it is in addition to the average backward years. Consequently, I do not think the stocks make a smart purchase today, although they still rise in the coming years.
Access to the issue of whether the stock can help you retire a millionaire, I think there are two computers in playing. If you have a very long horizon and you can invest a larger total in the foreground, the opportunities are greater. Just do not expect to repeat previous revenues.
Moreover, investors should not hope that one arrow can transfer them to the promised land. Diversification is the best way to the success of permanent investment.
Before buying stocks at Netflix, think about this:
the Motley Adviser is a lie The analyst's team has just identified what they think 10 best stocks For investors to buy now … Netflix was not one of them. The ten shares that made the pieces can produce monster revenues in the coming years.
Look at when Nafidia This list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation, You will have 721,394 dollars!
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*The stock consultant dates back from March 18, 2025
Neil Patel His customers have no position in any of the mentioned shares. Motley Fool has positions in Netflix and recommends it. Motley deception has Disclosure.
Can Netflix shares help you retire a millionaire? It was originally published by Motley Fool