Investors are losing confidence in this innovative industry pioneer.
When it comes to the streaming industry, there might be no business that commands more attention among investors than Netflix (NFLX +1.28%). The innovator deserves credit for spearheading the changing media landscape to huge success. But did that huge success translate into successful returns for investors?
If you’d invested $100 in this streaming stock five years ago, here’s how much you’d have today.
Image source: Netflix.
Netflix is not the lead role
In the past five years, the S&P 500 (^GSPC +0.05%) put up a total return of 91% (as of Feb. 11). That gain is well ahead of what Netflix achieved, which is a 45.1% return. This means that had you invested $100 in the company’s shares, you would have just $145.87 today. This underperformance might come as a revelation to many investors.
By zooming out, though, we see a better image. The stock is up 830% in the past decade.
Today’s Change
(1.28%) $0.97
Current Price
$76.83
Key Data Points
Market Cap
$325B
Day’s Range
$75.54 – $77.17
52wk Range
$75.23 – $134.12
Volume
7.7K
Avg Vol
47M
Gross Margin
48.59%
The market’s dissatisfaction is on full display
Netflix shares are trading 38.6% below their peak from June last year. The stock dropped after Q3 2025 earnings came in below expectations due to a tax dispute in Brazil.
Besides that, shares have been facing downward pressure following the announcement to acquire certain assets of Warner Bros. Discovery at an enterprise value of $82.7 billion. The market probably isn’t pleased with the amount of debt Netflix will need to take on to complete the deal.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
