Netflix Inc. (NFLX) is an Internet television network giant that provides worldwide users with Internet streaming of TV shows and movies. Netflix also provides its customers with DVD-by-mail membership services. Since its humble beginnings as a mail-order movie and TV show delivery service in 1997, the company has gone public, and as of June 30, 2015, has a year-to-date return of 92.31%. An investment of $990 on Netflix's initial public offering, or IPO, date of May 23, 2002 and a $1,000 reinvestment when it was trading at $5 would have generated over $400,000 after stock splits.

How Much Money You Would Have Made if You Invested in Netflix

If you invested $990 right after Netflix's IPO, assuming you purchased each share of Netflix at its IPO price of $15, you would have 66 shares. Netflix did not continue higher; instead, it traded in a downtrend until early October 2002, where it hit a low of $4.85. Assume instead of selling Netflix for over a $10 loss per share, you invested another $1,000 at $5 per share. Another $1,000 investment would have allowed you to purchase 200 more shares before fees and expenses. You would have 266 shares at an average price of $7.48 per share, or ($15 * 66 shares) + ($5 * 200 shares) / (200 shares + 66 shares). This is before Netflix announced its two-for-one stock split and seven-for-one stock split.

2004 Two-for-One Netflix Stock Split

On Feb. 11, 2004, Netflix closed at $71.96 per share. On Feb. 12, 2004, Netflix issued a two-for-one stock split, so those 266 shares would double to become 532 shares. On Feb. 12, 2005, Netflix closed at $37.30 per share. The investment of $1,990 would have been worth $19,843.60, a return on investment, ROI, of 897.17%.

Thereafter, Netflix had its ups and downs. However, shares of Netflix topped $700 per share and hit a high of $711.45 on July 14, 2015. At Netflix's all-time high, the investment of $1,990 would have been worth $378,491.40, an ROI of 18,919.67%. Netflix closed at $702.60 per share on July 14, 2015. After Netflix hit a new all-time high, it was set to report its earnings for the quarter ending May 2015. The company reported earnings per share, or EPS, of six cents, which surprised analysts' estimates of five cents.

2015 Seven-for-One Netflix Stock Split

The day after Netflix reported its quarterly earnings and hit a new all-time high, the company was also set to issue another stock split, this time, a seven-for-one stock split on July 15, 2015. On July 15, 2015, your 532 shares would become 3,724 shares. On the date of the stock split, Netflix closed at $98.13 per share. The total position yields was $365,436.12 at the close, which was a decrease of $13,055.28 from the high on July 14, 2015.

However, from July 15, 2015 through July 17, 2015, Netflix increased by $19.75 from $98.13 to a high of $117.88 on July 17, 2015. Over the course of two days, the total position yields was $438,985.12 at the high, an increase of $73,549 since July 15, 2015.

Present-Day Value From a Netflix IPO Investment

As of July 24, 2015, Netflix closed at $109.34 per share. If you had a high risk tolerance and were able to stick through the wild ride and reinvested your money, you would have a return on investment of 20,361.42%, or ($109.34 * 3724 shares) - ($7.48 * 266 shares) / ($7.48 * 266 shares).
Your total investment of $1,990 would have been worth $407,182.16 at the close of July 24, 2015.

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