Since then Netflix's business has grown rapidly. It is one of very few stocks to actually benefit from the pandemic since people have to stay home with little to do except watch television. In the first quarter of this year, Netflix gained twice as many new subscribers as Wall Street anticipated. Plus, Netflix has been expanding globally for the past two years; that growth is designed to offset the product's saturation in this country.
Netflix's stock value has moved accordingly. Today, it reached an all-time high of $450. $450! As I said, I got in at $55, which means my money has grown eight times its initial investment. And the crazy thing is everyone now believes Netflix will continue to go up.
I also believe that for multiple reasons: (1) global expansion still has room to grow; (2) streaming is replacing broadcast TV and the company is the streaming leader; (3) Netflix's investment in new content is deep and will pay future dividends (including now, when it has enough completed new shows to last through the year while other places have had to suspend production); (4) pricing for Netflix is still relatively low so the company can raise prices (and profits) in the future; (5) the company is now more valuable than Disney and all other competitors; (6) the company snagged the best talent in entertainment with long-term deals (promising the best show-creators with artistic freedom, unavailable from old media); and (7) the company is benefitting from "vertical integration" (the holy grail of the entertainment business which was previously illegal as antitrust violation).
I don't tell anyone what to do with their money; just saying where mine is. If you have any questions, contact me.
Wow, good for you! You have a mind for spotting the up and comers (Bitcoin!), Ally! It's a real talent!
ReplyDeleteI hope this makes your dreams a little closer. :)
It is! In fact, my success investing has made it possible for me to retire/shift-gears sooner rather than later. I'll be pulling the trigger on that soon.
DeleteOh, great news! Yay!!
DeleteGood for you! I keep telling the hubby we need to invest in the cruise lines right now but he won't listen! Netflix is another great one!
ReplyDeleteYay! Well done Ally! Sounds like you are one smart cookie. And a global pandemic didn't hurt ;-)
ReplyDeleteAll the best with your plans.
Xo Jazzy Jack
Thanks, pal. I'm saving up for a trip to see you. :)
DeleteThat's awesome, Ally. May your investment only continue to grow with each passing day.
ReplyDeleteI won't be surprised if cable and satellite TV services are one day put out to pasture by on demand and streaming services. By choice, we've not had cable (or satellite) for several years now (we didn't feel that we watched enough to justify its monthly expense) and happily use digital services for all of our at home TV and movie viewing.
We do toss around the idea of getting a DVD player every now and then, and sometimes of going older school still with a classic VHS machine, but haven't yet. Maybe one of these days. For now though, Netflix, Amazon Prime and YouTube are plenty for the relatively small amount of TV that we tend to watch.
Again, serious congrats. I'm really happy for you!
Autumn Zenith 🎃 Witchcrafted Life
Many consumers, especially young ones, are "cutting the cord" -- giving up cable, as you have. The price for cable is ridiculously high compared to alternatives. That trend will continue.
DeleteI watch a lot of old movies so I use my DVD player often. Netflix DVD (not the streaming service) has a much larger selection of old and foreign films so I use that regularly.
Thanks for the kind words. You're so sweet!
Well done! Netflix is a really great company from a consumer stand point. They poured a ton of money into new content, giving a wide variety of shows and movies the ability to be executed.
ReplyDeleteI do wish it was more Altered Carbon and 3% and less Tiger King and reality shows, but they have the pulse on what people want.
However I, too, am smart with my money and mooch off my family account because yeah, no reason to have my own ;)
Many people use their family/friends' password without paying. Netflix is aware of it and has tacitly decided not to clamp down. They are doing what Amazon and other successful companies do in the beginning: build bridges, not tear them down. They believe (and are probably right) that free-loaders today are likely to become paying customers tomorrow.
DeleteNicely done Ally! I wish I knew anything about investments or money in general...all I know is how to spend it! LOL. I agree, Netflix will only continue to grow. Plus I like them because they still offer DVDs, which old people like me still use in addition to streaming services.
ReplyDeleteI also use their DVD service. Deeper selection of titles.
DeleteThis further cements my knowledge that you are one of the most astute people I know! Well done to you! I am really glad that you have used your savvy to your gain!! I've only recently started using it (in fact since February) as we share my Mother-in-Law's account (you can have an extra person on there) and we got a Smart TV in the new year! Currently watching a show called Never Have I ever!
ReplyDeleteNetflix creates a lot of entertaining shows with something for everyone. Plus, it's expanding all over the world. Right now I'm watching a Spanish show it made that's like "Sex and the City" called "Valeria."
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