What your investment in Netflix would be worth today if you had invested $1,000 10 years ago

Netflix is set to report its third quarter earnings after market close on Thursday, with its stock price having steadily risen since the beginning of the year.

The closing price of Netflix's shares on October 16th was $702, representing an increase of approximately 44% year to date.

Netflix's stock has seen growth in recent quarters due to its measures against password sharing, entry into live sports, and introduction of a cheaper ad-supported tier. As of May 15, the streaming service had 40 million global monthly active users, with a total of 270 million subscribers.

Netflix may stop providing regular updates on its membership numbers with the next earnings report.

The company declared that from 2025 onwards, they would stop sharing quarterly updates on membership numbers and average revenue per user data.

"Netflix co-CEO Gregory Peters stated during the company's 2024 first quarter earnings call on April 18 that the change in focus is driven by the desire to concentrate on the most important metrics for the business. He added that the company will only announce major milestones and will not include them in regular reporting."

How much an investment in Netflix is worth

Netflix commenced trading on May 23, 2002, with its initial public offering priced at $15 per share. Since then, the streaming service's popularity has led to a significant increase in the stock's value.

CNBC determined the present value of a $1,000 Netflix investment from one to ten years ago, as well as the date of the company's initial public offering 22 years ago.

Netflix's latest quarterly earnings report may impact CNBC's calculations based on the company's Oct. 16 closing price.

If you invested one year ago

• Percentage change: 95%
• Total as of Oct. 16: $1,946

If you invested five years ago

• Percentage change: 145%
• Total as of Oct. 16: $2,452

If you invested 10 years ago

• Percentage change: 1,259%
• Total as of Oct. 16: $13,586

If you invested when Netflix went public in May 2002

• Percentage change: 65,420%
• Total as of Oct. 16: $655,201

The passive investing strategy most financial experts recommend

Despite a company's short-term success, its long-term performance is not always guaranteed due to various factors such as new regulations, natural disasters, or shifts in investor sentiment.

Financial experts suggest a passive approach to investing, such as using low-cost index funds, instead of manually selecting individual stocks.

Index funds are generally less expensive than actively managed funds because they only follow a market index, while actively managed funds typically have a team of expensive managers and analysts who pick and trade securities.

An alternative version of the sentence could be: By investing in index funds that mimic the S&P 500, you can easily diversify your portfolio and reduce the risk of a downturn in a specific industry. Your investment dollars will be spread across a range of large companies such as Apple, Nvidia, and Walmart.

Since Oct. 16, the S&P 500 has increased by approximately 34% compared to the same time last year, according to CNBC's calculations. Its value has grown by over 95% since 2019, about 214% compared to a decade ago, and around 430% since 2002.

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