
"Netflix Inc. ( NASDAQ: NFLX) has a lot to celebrate in 2025, including upcoming seasons of popular shows such as "Stranger Things" and "Nobody Wants This"; the success of international content from Korea, Latin America, and elsewhere; and the introduction of live and interactive content. All this has helped buoy the stock despite economic uncertainty. Shares hit an all-time high of $1,341.15 this summer but have retreated 10.0% since. Compared with Netflix's initial public offering price, the stock is up almost 110,400%, with much of that gain coming since the depths of the COVID-19 pandemic."
"Before winning the streaming wars, Netflix was already transforming the home entertainment industry. It was founded in 1997 by Reed Hastings as a DVD-by-mail subscription service. At the time, the movie rental market was dominated by physical rentals from giants like Blockbuster. Netflix's business model disrupted the traditional movie rental model by offering convenience and eliminating late fees."
"Hastings took the company public five years later on May 23, 2002, at a split-adjusted $1.16 per share. Today, the stock trades near $1,200 per share, for a compounded annual growth rate of 35.3%. That means every $1,000 invested in the streamer in 2002 is worth about $1.1 million today."
Netflix targets 2025 growth with new seasons of flagship shows, expanded international hits from Korea and Latin America, and the rollout of live and interactive programming. Those content and product moves helped drive shares to an all-time high of $1,341.15 before a 10% retreat. The company originated in 1997 as a DVD-by-mail service, went public in 2002 at a split-adjusted $1.16 per share, and began streaming in 2007. Long-term returns have been substantial, with a 35.3% compounded annual growth rate turning a $1,000 2002 investment into roughly $1.1 million. Investors seek long-term projections based on business assumptions and growth opportunities.
Read at 24/7 Wall St.
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