Question of the Day: If you invested $1,000 in Netflix stock 10 years ago, what would it be worth now?
Netflix stock prices have just rebounded to their peak from before a 2022 crash.
Answer: $10,260.08 (as of September 2024)
That comes out to an average 26% annual rate of return!
Questions:
- How would you describe the trend in Netflix stock prices over time?
- What factors might have caused significant changes to Netflix’s stock price?
- Do you think as an investor it would have been easy to buy Netflix stock 10 years ago and hold it over this time period? Explain your answer.
- Who do you think are Netflix’s competitors today?
Here are the ready-to-go slides for this Question of the Day that you can use in your classroom.
Behind the numbers (Yahoo Finance):
"A $1000 investment made in August 2014 would be worth $10,277.96, or a 927.80% gain, as of August 19, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases. Compare this to the S&P 500's rally of 184.10% and gold's return of 86.07% over the same time frame.
Analysts are anticipating more upside for NFLX. Netflix added 8.05 million paid subscribers globally in second-quarter 2024, with a rise of 1% in average revenue per subscription."
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Check out the popular Investing activity PROJECT: 5 Stocks on Your Birthday!
About the Author
Kathryn Dawson
Kathryn (she/her) is excited to join the NGPF team after 9 years of experience in education as a mentor, tutor, and special education teacher. She is a graduate of Cornell University with a degree in policy analysis and management and has a master's degree in education from Brooklyn College. Kathryn is looking forward to bringing her passion for accessibility and educational justice into curriculum design at NGPF. During her free time, Kathryn loves embarking on cooking projects, walking around her Seattle neighborhood with her dog, or lounging in a hammock with a book.
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