If you invested $1,000 in Netflix 10 years ago, here's how much money you'd have now
From cracking down on password sharing to rolling out new gaming options, Netflix has been making plenty of noteworthy moves lately.
In late May, Netflix began alerting subscribers that they would only be able to share their accounts with people who lived with them.
With this new policy, subscribers who want to share their account with someone outside of their household have two options: pay an extra $7.99 a month for each additional person using their account or transfer the profile so that person can sign up for their own membership.
It seems like many users opted for the latter. Following the new policy rollout in May, average daily signups surged by 102%, according to Antenna. And the streaming giant says it added 8.76 million global subscribers during its 2023 fiscal third-quarter.
And some of those new subscribers may soon be able to stream games on their Netflix accounts.
In a press release updated on Oct.16, Netflix announced a small number of users in the U.S. would be able to try out its new game streaming technology with two games: Oxenfree, an adventure game, and Molehew's Mining Adventure, a gem-mining arcade-style game.
How much an investment in Netflix is worth
On Oct. 18, Netflix reported its fiscal third-quarter earnings after the closing bell. Shares are up around 17% year to date.
For the quarter ending September 2023, Netflix reported revenue of $8.54 billion which was in line with what analysts expected, according to LSEG. Additionally, the company reported earnings per share of $3.73, which surpassed the $3.49 analysts anticipated.
If you had invested $1,000 in Netflix one, five or 10 years ago, here's how much your money would be worth now. CNBC's calculations are based on Netflix's Oct. 17 closing share price of $355.72 and don't factor in price movement that occurred following the company's latest quarterly earnings report.
If you had invested $1,000 in Netflix a year ago, your investment would have increased by about 45% and be worth around $1,451 as of Oct. 17, according to CNBC's calculations.
If you had put $1,000 in Netflix five years ago, your investment would have decreased slightly in value by 2.5% to $975 as of Oct. 17, according to CNBC's calculations.
And if you had invested $1,000 in Netflix a decade ago, it would have ballooned by more than 654% to $7,543 as of Oct. 17, according to CNBC's calculations.
When it comes to investing, research is key
Although a given company's stock may be performing well currently, past performance doesn't guarantee future results. The stock market is unpredictable, and share prices can be subject to wild price swings.
Plus, hand-picking individual stocks isn't the best investing strategy for most people. Most financial experts recommend a more passive strategy, such as buying an index exchange-traded fund or mutual fund.
These types of low-cost funds aim to mirror a market index like the S&P 500, which tracks the stock performance of around 500 large U.S. companies. Investing your money this way helps to easily diversify your portfolio by spreading your dollars across a vast array of companies, such as Netflix, Apple and Amazon.
As of Oct. 17, the S&P 500's value had increased by about 16% over the past 12 months. It has grown by close to 56% since 2018 and soared by 152% since 2013.
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