Question of the Day: If you invested $1,000 in Netflix stock 10 years ago, what would it be worth now?
A far cry from what it was worth at its peak, but a better-than-average return over 10 years.
Answer: $10,131 (as of September 2023)
- Would you say the increase in value was steady over time? Why or why not?
- What competitive or technological innovations may have disrupted and then accelerated Netflix’s growth?
- 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.
- If you had made the same investment a year earlier in 2012 rather than 2013, its value would be over $50,000. What does that say about trying to time your entry into the stock market?
- Who do you think are Netflix’s competitors today?
Behind the numbers (GoBankingRates):
"For the most part, investing $1,000 into the stock market over the past decade was a winning strategy — the average total return for the S&P 500 was just over 12% annually for the last ten years.
However, while some of the most popular stocks produced significant gains, other well-known stocks actually lost money from 2013 to 2023. Here’s a look at how much $1,000 invested in some of the top stocks of 2013 would be worth today."
Check out the Investing unit in NGPF's Semester Course
Check out one of NGPF's most popular investing activities in which students track the long-term performance of stocks they select: 5 Stocks on Your Birthday