When investors think of the current media landscape, the business that probably comes to mind first is Netflix (NFLX 4.24%). The video entertainment powerhouse has been a true innovator. Today, it has a global reach, with a presence in more than 190 countries.
If you'd invested $10,000 in this streaming stock 10 years ago, here's how much you'd have today.
Image source: The Motley Fool.
A $10,000 investment in Netflix shares exactly a decade ago would be worth $83,500 today (as of June 1). This translates to a phenomenal 735% gain. Compared to the benchmark S&P 500 index, this is a significantly better return.
NASDAQ: NFLX
Key Data Points
Massive investments in content and technology helped attract viewers who wanted a better experience than traditional cable TV. So it shouldn't be surprising for investors to learn that Netflix's impressive growth drove the stock to a big gain. At the end of last year, the company had more than 325 million subscribers. At the end of 2015, that figure totaled 71 million.
Revenue rose 565% during that same time, supporting Netflix's robust earnings profile. Operating income jumped 18.2% year over year in the first quarter (ended March 31), resulting in a stellar operating margin of 32.3%.
The streaming stock currently trades 36% off its peak. But even at a historically low price-to-earnings ratio of 27.7, the valuation still isn't in bargain territory.
