Netflix (NFLX -0.96%) is a two-time category-creating business. First, it upended the movie rental industry with a DVD-by-mail model. And as online content became available, the company again disrupted the traditional cable and media industry by serving digital content directly to subscribers' televisions.
Today, Netflix dominates the streaming and entertainment landscape, and long-term investors have benefited from the stock's monster returns.
If you'd invested $10,000 in Netflix shares 10 years ago (in Oct. 2015), here's how much you'd have today.
An 11-bagger performance
Netflix has produced seriously eye-popping returns. This streaming stock has surged 996% in the last decade (as of Oct. 7), meaning investors who bought $10,000 of shares back then would have a position worth nearly $110,000 today. The overall market's return doesn't even come close.
Impressive fundamentals have driven shares higher
It's no surprise that Netflix shares have performed so well, given the company's strong fundamentals. For instance, the business counted 54.5 million paying subscribers on its platform at the end of 2014. At the end of 2024, this figure had exploded to 301.6 million with the streaming service available in more than 190 countries.
Meanwhile, after struggling with profitability for years due to the company's heavy investments in content, Netflix is now reporting impressive free cash flow and net income growth.
Data by YCharts.
Revenue has also soared, and the growth continues to this day with the top line increasing at a double-digit pace for seven straight quarters.
Though investors who buy Netflix stock today shouldn't expect to see another 11-bagger performance over the next 10 years, the company's dominant industry position and rising profitability can still make it a market-beating investment going forward.
