Could Buying Netflix Today Set You Up for Life?

• Netflix's Qwikster-era clang successful 2011 acceptable up bonzer semipermanent gains for investors who bought the dip and held on.

• Repeating a 36% yearly instrumentality for different 14 years would connote a $34 trillion Netflix marketplace cap, which is wholly unrealistic.

• If Netflix tin modestly outperform the S&P 500 implicit decades, a $13,000 concern successful 2025 could inactive compound toward 7 figures successful astir 3 decades.

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Once upon a time, Netflix (NASDAQ: NFLX) shifted into 2nd gear. The institution dominated video rentals by then, fundamentally driving incumbents specified arsenic Blockbuster and Movie Gallery retired of business. Digital video streams had been a escaped bonus for Netflix subscribers since 2007, but it was clip to person that escaped diagnostic into a abstracted moneymaking business.

With 14 years of hindsight, it's casual to accidental that the streaming absorption was the close idea. Netflix is simply a planetary media elephantine today, powered by an astir perfectly planetary integer video service. But this aboriginal wasn't evident successful 2011, and Netflix's absorption definite didn't grip the strategy power perfectly. The Qwikster debacle drove stock prices arsenic overmuch arsenic 59% little successful little than 3 months.

If you had the foresight to bargain much Netflix banal successful that heavy dip, you'd person immoderate monolithic gains by now. The fistful of shares I added astatine the extremity of October are up by 7,836% arsenic of Dec. 11, 2025. It's a shame I didn't person $13,000 of investable currency to spare astatine the clip -- that would person been worthy much than a cardinal dollars by now.

So, Netflix has a past of game-changing terms gains. However, past returns don't accidental thing astir aboriginal prospects. Can Netflix's banal inactive acceptable you up for beingness if you invest, say, $13,000 successful December 2025?

First of all, it's unreasonable to expect Netflix to support up its world-class maturation for different decennary and a half. My opportunistic bargain successful the Qwikster dip has seen a compound yearly maturation complaint (CAGR) of 36.6% for 14 years. Repeating that show would springiness Netflix a $34 trillion marketplace headdress by the twelvemonth 2039.

The fig should beryllium adjusted for inflation, banal dilution, satellite phases, and truthful on, but that's inactive an outrageous target. A $13,000 Netflix concern contiguous won't beryllium worthy $1,000,000 successful 14 years. Honestly, you request lottery tickets and a day with Lady Luck to marque a cardinal that fast.

That being said, I spot large worth successful Netflix close now.