A few years ago, before the arrival "House of Cards" and "Orange is the New Black," Netflix appeared to be on the brink of collapse. In September 2011, CEO Reed Hastings decided to split the streaming business from the DVD rental unit, which was to be named Qwikster.
Investors hated it, as did customers. Hastings backtracked on the plan, but it was too late. The stock fell so precipitously — 50 percent in two months — that in November 2011, T. Rowe Price and Technology Crossover Ventures jumped in with an emergency $400 million cash infusion.
Analysts at Canaccord Genuity kept their sell rating on the stock even after the investment, writing at the time that Netflix continues to face "numerous challenges, including subscriber losses, rising content costs and an increased competitve landscape."
In hindsight, it looks like one of the great bets of all time.
T. Rowe Price's $200 million investment was in stock — 2.86 million shares for $70 each. Since then, Netflix split its stock seven for one. Based on today's price, T. Rowe purchased shares for $10 each.