Could Netflix Stock Help You Retire a Millionaire?

3 weeks ago 9

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Neil Patel, The Motley Fool

Sat, Mar 22, 2025, 11:45 AM 4 min read

There are fewer businesses that person taken attraction of investors the mode Netflix (NASDAQ: NFLX) has. Since the company's archetypal nationalist offering successful 2002, shares person skyrocketed, rising 80,080% (as of March 19). This means that if you invested a tiny sum of conscionable $1,250 backmost then, you would beryllium sitting connected a seven-figure equilibrium contiguous from this azygous investment. That's an unbelievable outcome.

Netflix's marketplace headdress contiguous exceeds $400 billion. But the concern is surely inactive connected the radar for galore investors looking to enactment immoderate wealth to enactment implicit the agelong haul.

If you bargain this apical streaming stock today, tin it assistance you discontinue arsenic a millionaire? I judge it's important to larn what makes this institution peculiar earlier deciding if it should beryllium successful your portfolio.

Investors request to recognize the company's scale. Netflix raked successful $39 cardinal successful gross successful 2024. That was up 16% twelvemonth implicit twelvemonth and 609% higher than a decennary ago.

It counted 302 cardinal subscribers arsenic of Dec. 31. Again, this cardinal metric has accrued rapidly implicit the years. At the extremity of 2014, determination were 57 cardinal customers.

Perhaps nary origin has contributed much to Netflix's awesome ascent than its first-mover advantage. It was capable to summation members and turn gross rapidly due to the fact that it was chiefly competing against accepted cablegram TV and providing a superior experience. Of course, the competitory scenery has shifted, but the institution is inactive successful the lead.

And it's casual to beryllium optimistic. According to information from Nielsen, the streaming level represented 8.2% of regular TV viewing clip successful the U.S. successful February, down lone YouTube. Engagement volition stay strong, particularly with caller seasons of incredibly fashionable shows Squid Game, Wednesday, and Stranger Things coming retired successful 2025.

The company's monster occurrence successful the streaming manufacture has go much evident successful the past fewer years, peculiarly arsenic competing services person entered the marketplace successful an effort to summation customers and standard up. This couldn't beryllium much evident erstwhile you look astatine profitability, thing Netflix excels astatine these days.

It has specified a ample gross and subscriber basal that its bottommost enactment has exploded. The company's operating borderline went from 13% successful 2019 to 27% past year, with executives targeting 29% successful 2025. Its scalability is showing up close earlier our eyes.

The institution operates a fixed-cost concern model; serving each further idiosyncratic has minimal marginal costs, arsenic is typically the lawsuit with integer services. In theory, contented costs don't request to turn twelvemonth to year, astatine slightest successful lockstep with income gains. So, by adding much subscribers and expanding revenue, net person soared. This inclination has besides been supported by occasional terms hikes.