Investing’s one of those things that you’ve just got to have a keen eye for in order to be successful. Sure, every once in awhile, there will be people who take a tip from a friend or family member and toss a couple hundred or thousand bucks at a company and it hits big, but, for the most part, the investors who make the most money are the ones who know what the hell they’re doing, understanding the trends of the market.
One of the companies that was definitely worth taking a gamble on and investing into over a decade ago? Oh, just some video service called Netflix, which was founded in 1997 and has since become the premier destination for streaming content. First offering customers a place to receive DVDs in the mail, the brand shifted into original shows and movies, singlehandedly putting Blockbuster out of business along the way.
Given the success of Netflix as a service from its beginning to today, it’s unsurprising to find out that anyone who invested in the company in 2007 is happy with the decision to do so. But how much would a $1,000 investment be worth today? According to CNBC, investing that one grand into the streaming service on June 15, 2007 when it was being traded at $2.82/share would have a wild return of nearly $125,000 at the closing point in today’s stock market — which has Netflix selling a share for $351.27. See, told you that investing takes serious skill; and a lot of patience, too, in order to see these type of returns.
As Netflix, basically, created the streaming market, it has since led to other brands trying to duplicate something similar these days. That’s why companies like Hulu, ESPN+ to the soon-to-be-released Disney+ are all available to consumers, hoping to steal some of the momentum that Netflix created. But, according to the CNBC piece, even with all the competition, investors are optimistic that the original streaming service will still have staying power — so all those investing in Netflix 12 years ago needn’t worry.
“While other services may carve out valuable add-on positions, we do not expect the launch of new services from Apple, Disney, AT&T, or others to meaningfully impact Netflix,” they said. “We continue to view Netflix’s strategic positioning very favorably.”
Investment banking company Deutsche Bank raised its rating on Netflix shares from “hold” to “buy” early Tuesday, saying the service is becoming more like a “platform” every day.
“Platform status brings network effects not available to peers and competitors,” analyst Bryan Kraft wrote in a note. “Specifically, this is making Netflix even more of a go-to destination when consumers want to watch something, and it means having Netflix is becoming more of a cultural necessity for people around the world. It also makes Netflix a magnet for talent. ”
For those who got in on investing in Netflix long ago, congrats to you, because you’re probably sitting on a gold mine. For others, well, it might be time to educate yourselves by reading some “investing for dummies” tips, because you’re missing out on a the chance to make a fortune for simply taking a gamble with your money. And all those early investors in Netflix are laughing at you from their private yachts and and planes as they stream their favorite shows, too.