3 Stocks To Buy And Hold For Years – Netflix

 

2. Netflix

Netflix, an American technology company headquartered in California, is a media services provider and production company. The main activity of the company; To provide a paid subscription-based video streaming service. Netflix (NASDAQ: NFLX) needs little promotion as a widely used service globally.

Over the past 19 years, its shares have increased by 44,557 percent overall. This means that your investment of $ 1,000 has gained enough value to reach $ 446,287

When we hit the annual average, it means a growth rate of over 38 percent! (The average annual return of the stock market in the long run is close to 10 percent.) Netflix has made us watch one of the best stock market performances in the last decade. Netflix also teaches us a great lesson that no matter how big companies stumble or their stock melts, they will still be able to rally and rise to great heights. In 2011, Netflix CEO Reed Hastings saw video streaming to be a very promising industry, following which he announced a project called "Qwikster" to do DVD distribution by mail while Netflix focused on streaming. The project was widely disturbed. Even the thought of customers paying for two subscriptions instead of one took a huge blow to the stock. Although the plans were canceled, Netflix continued to grow its business.

Today, the video streaming giant with a market value of $ 229 billion is worth more than Nike or PepsiCo.

Netflix added more than 8 million new subscribers in the last fiscal quarter, bringing its total subscriber base to over 200 million. Quarterly revenues increased by 21.5 percent compared to the same period last year. Another great news was that the company said it was no longer planning to borrow money to finance its operations. In other words, there is plenty of cash coming in. Netflix's shares may seem overpriced at a Price/Earning ratio of 85 and at a price to cash ratio of 97, but both of these numbers are well below their five-year averages. For long-term investors, it seems like a reasonable moment to invest in Netflix.   3 Stocks To Buy And Hold For Years – Netflix Source: https://www.fool.com/ You may also be interested in:

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