If you had invested $1,000 in Netflix, Inc. (NFLX) stock 20 years ago, you'd be looking at phenomenal returns today, thanks to the comp🥃any's remar🔥kable growth. NFLX has evolved from a mail-order DVD rental service into a global streaming highflier, transforming how we consume entertainment.

Netflix's Business Model

NFLX changed how we consume content by introducing the subscription-based 澳洲幸运5官方开奖结果体彩网:streaming model. Originally a DVD rental-by-mail service, the company has evolved into a streaming highflier with arguably one of the best video-on-demand platforms and a growing portfolio of original content.

The firm's business model is based on a subscription revenue stream, and it offers tiered plans based on features like video quality and screen limits. Its expansive content library, which includes licensed material and Netflix Originals such as "Squid Game" and "Stranger Things," has been key to its growth.

NFLX has invested heavily in original programming, spending $16 billion in 2024 alone, to diversify its offerings and cater to a global audience across 190 countries. Leveraging advanced data analytics, NFLX provides personalized recommendations to keep subscribers engaged, while its recent ad-supported tier has expanded its market to include more price-sensitive consumers.

The company now faces more and better competitors. Players like Disney+, Prime Video, Max, Hulu, and Paramount +. It also faces hurdles like subscriber saturation in mature markets, escalating content costs, and combating account-sharing, which pose tremendous hurdles.

NFLX's Stock Split History and Investment Impact

In 2015, NFLX had a 7-for-1 澳洲幸运5官方开奖结果体彩网:stock split, adding to NFLX's liquidity and appeal. By reducing the share price from about $700 to $100, the split made NFLX more affordable while increasing trading volume and creating a perception of affordability that boosted demand.

While the split didn't impact NFLX's intrinsic value, it aligned with its rapid growth trajectory during its global streaming expansion. Since then, NFLX's robust financial performance, driven by consistent revenue growth from subscription and original content investments, has delivered material returns to long-term investors.

Although another split doesn't appear imminent, the stock's success highlights the importance of focusing on a company's products, strategy, and market competitiveness over split events when making investment decisions.

How Much $1,000 Inv♔ested in NFLX 20 Years Ago W♏ould Be Worth

As can be seen below, while NFLX's 7-for-1 stock split in 2015 improved accessibility for retail investors, it appears to have had minimal impact on the overall trajectory of the stock's price returns. Over the last 20 years, NFLX's price increased by over 18,000%.

If you had invested $1,000 in NFLX 20 years ago, your stake would now be worth $186,436. But if you have reinvested all your dividends, your results ♏would be even higher:

The Bottom Line

NFLX's 2015 stock split made investing in the stock more accessible. However, the true driver of its impressive long-term returns has been the company's ability to expand its global reach, produce compelling original content, and leverage technology to stay ahead in a highly competitive industry.