Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.
Netflix’s Big Decade
One of the top performers of the decade was streaming video giant Netflix Inc (NASDAQ: NFLX).
Netflix is the most successful streaming video service in the world. As of mid-2019, Netflix had 158.8 million over-the-top streaming video viewers, much more than leading competitors such as Amazon.com, Inc. (NASDAQ: AMZN) Prime Video (96.5 million) and Hulu (75.8 million).
If the 2000s were defined by Netflix’s shift from a DVD-by-mail model to a streaming model, the 2010s were defined by Netflix’s shift to original content and its international expansion.
Netflix issued a seven-to-one stock split back in 2015, so all the prices mentioned below are on split-adjusted terms.
Incredibly, Netflix shares started the 2010s trading at around $7.64, near its low point for the decade. After surging as high as $43.54 by mid-2011, Netflix shares tanked on concerns about the company’s heavy investments and lack of profitability. Netflix once again tested its decade lows in 2012, dropping as low as $7.54. From that point forward, it was a slow and steady climb for the next seven years with few interruptions.
2020 And Beyond
Netflix reached its decade high of $423.20 in mid-2018.
Despite cooling down a bit since then, the popular stock was without a doubt one of the best investments of the decade.
In fact, $100 worth of Netflix stock in 2010 would be worth more than $4,230 today.
Looking ahead, analysts expect more upside from Netflix in 2020. The average price target among the 38 analysts covering the stock is $397.50, suggesting 17.3% upside from current levels.
Those gains could start as soon as Tuesday afternoon when Netflix reports fourth-quarter earnings.