Dec 17, 2017

Question of the Day: If you invested $1,000 in Netflix stock ten years ago, what would it be worth today?

 

Answer: $51,966 (as of 10/31).

Remember when subscribing to Netflix meant watching the mailbox for DVDs?  One look at their stock price appreciation lets you know they successfully navigated through the “disruption” to at-home entertainment with the adoption and availability of streaming video.  In fact, they are expected to spend $8 billion on original content in 2018.  As for Blockbuster, they did not fare so well. Netflix’s success earned it a place in the group of stocks affectionately referred to as “FAANG” – along side Facebook, Apple, Amazon, and Google.

CNBC provides visual display of the 10 year results for a number of well-known stocks: 

Questions for your students

  • Do you think 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.
  • Who do you think are Netflix’s competitors today?

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Here are the ready-to-use slides for this Question of the Day

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Check out one of NGPF's most popular investing projects in which students track the long-term performance of stocks they select: 5 Stocks on Your Birthday

 

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