Introduction
It is so surprising that I should have read Netflix wiki article long time ago, probably in 2002, not in 2019 Sept. 19. I subscribed Netflix a few years starting from 2015 (?), I should look into the company as my investment. I spent half hour to read this wiki article, and I like to write down what I should look into, facts, arguments, ideas related to Netflix.
4 ideas to learn from
It is so easy to figure out what I should look into, and the wiki article is written so well with data, facts, and finance. I just could not believe that I spent time from 2002 to 2019 on so many things, but I should have spent at least 10 hours on Netflix case study.
Fact 1:
While they experienced fast growth in early 2001, both the dot-com bubble burst and the September 11 attacks would occur later that year, affecting the company badly and forcing them to lay off one third of their 120 employees.
Netflix initiated an initial public offering (IPO) on May 29, 2002, selling 5.5 million shares of common stock at the price of US$15.00 per share. On June 14, 2002, the company sold an additional 825,000 shares of common stock at the same price.
Fact 3:
By 2010, Netflix's streaming business had grown so quickly that within months the company had shifted from the fastest-growing customer of the United States Postal Service's first-class service to the largest source of Internet streaming traffic in North America in the evening.
Fact 4:
Finance
For the fiscal year 2018, Netflix reported earnings of US$1.21 billion, with an annual revenue of US$15.8 billion, an increase of approximately 116% over the previous fiscal cycle. Netflix's shares traded at over $400 per share at its highest price in 2018, and its market capitalization reached a value of over US$180 billion in June 2018. Netflix ranked 261 on the 2018 Fortune 500 list of the largest United States companies by revenue.[114]
| Year | Revenue in mil. USD-$ | Net income in mil. USD-$ | Price per Share in USD-$ | Employees |
|---|---|---|---|---|
| 2005 | 682 | 42 | 2.59 | |
| 2006 | 997 | 49 | 3.69 | |
| 2007 | 1,205 | 67 | 3.12 | |
| 2008 | 1,365 | 83 | 4.09 | |
| 2009 | 1,670 | 116 | 6.32 | |
| 2010 | 2,163 | 161 | 16.82 | 2,180 |
| 2011 | 3,205 | 226 | 27.49 | 2,348 |
| 2012 | 3,609 | 17 | 11.86 | 2,045 |
| 2013 | 4,375 | 112 | 35.27 | 2,022 |
| 2014 | 5,505 | 267 | 57.49 | 2,450 |
| 2015 | 6,780 | 123 | 91.90 | 3,700 |
| 2016 | 8,831 | 187 | 102.03 | 4,700 |
| 2017 | 11,693 | 559 | 165.37 | 5,500 |
| 2018 | 15,794 | 1,211 | 7,100 |
Fact 5:
Netflix ranked 261 on the 2018 Fortune 500 list of the largest United States companies by revenue.[114]
Fact 6:
Netflix's shares traded at over $400 per share at its highest price in 2018, and its market capitalization reached a value of over US$180 billion in June 2018.
Actionable Items
1. Based on Fact 2, I should look into those IPO companies, and find out which one is possible to be a S & P Index 500 company in 10 years or 20 years, why?
2. Based on Fact 3, I have to push myself to learn technology and see how technology changes business run differently. Internet streaming traffic, the idea to copy from youtube.com, all those should be my job in order to build wealth and grow rich. I should be able to read and think, figure out how to invest early, and stay confident as an individual investor.
3. Finance - I should learn to read finance, and then get some data first. I should learn from
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