So what: There was some noise at the start of November, but the big breakaway from the S&P 500 is easily pinpointed. At the midpoint of the month, Netflix got a triple helping of value-boosting help:
- Master investor George Soros reported a brand-new Netflix position alongside a stake in Amazon.com, another newcomer to the Soros Fund Management portfolio. Investors sit up and take notice when well-known market makers turn in a new direction, and Soros is betting big on digital entertainment here.
- Networking specialist Ericsson published its annual forecast of long-term data trends, predicting a tenfold rise in global mobile data usage between 2015 and 2021. That's up from the eightfold five-year increase it was expecting a year ago. In other words, mobile data growth is accelerating, and Netflix-style digital video plays a major part in that megatrend.
- Finally, according to a report from the Australian government's Communications and Media Authority, some 2.5 million Aussies already subscribe to the Netflix service that launched Down Under in March. Based on this report, the Australian market was primed for a quick Netflix invasion. Lessons learned in Sydney and Auckland should help Netflix repeat this rapid launch in other new markets.
Now what: From the start of 2015 through the end of November, investors saw Netflix shares climb 151%. This stock is on a multiyear growth rampage, having risen more than 1,000% in just three years. The road has been rocky, with several 20% and 30% drops along the way, but the overall trend is undeniable: The only way seems to be up, at least in the very long run.