Netflix - The Best Performing S&P Stock Of The Past Decade

Author : Rashmie Dey | Published On : 15 Apr 2021

As the market rises in a new year, investors now keen to know the best performing S&P stocks over the past 10 years. Suffering from the great recession in 2010, the index has returned nearly 185%. When it comes to the best-performing stocks, how can we forget the giant stock Netflix, which is still gaining huge popularity worldwide? Needless to say, Netflix was the best performing stock for 10 years delivering a whopping 4,181% return outperforming all the current members of the S&P 500. Netflix, which is currently valued at $148 bn has managed to deliver these impressive returns for the past 10 years, right after a modest start with a few billion dollars in valuation in 2010. The top-notch company now is considered as one of the 40 most valuable companies in the US as it has received a lot of bullish support from Wall Street. Also, the street continues to support Netflix's future growth with powerful valuation multiples. This valuation sometimes forces investors to focus on value metrics such as profit and cash. Nowadays content production is counted as one of the highly competitive and expensive businesses. Also, top-notch cash-rich competitors ranging from Apple to Disney force Netflix to uplift its expenditure more on content. Netflix Originals constitutes a huge percentage in its growth strategy. This is because, in 2019, Netflix spent a total of $15 billion on content. History of Netflix In 2010, Netflix’s total subscribers had just over 12 million paying $9 per month. That's because of the joy of receiving those iconic red envelopes in the mailbox. The company, then, was worth a few billion dollars. If someone put a bet of $1 million on Netflix’s stock placed in the early months of 2010, it would be close to $43 million today. As of December 2019, the company gave a whooping return of 4,181% that beats all the current members of S&P 500, which Netflix joined in 2010 replacing the NewYork Times. Apart from its mid-cap days of the company, Net