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However, it became a superstar investment between 20, adding about $120 billion in value over the period, translating into an annual price appreciation of more than 50% a year. Netflix was a very good investment between 20, increasing its market capitalization by 33.36% a year and its market capitalization by about $3 billion, during that period. The difference between Netflix and these companies is that it’s climb to stardom has taken more time. Netflix has been publicly listed for longer than Facebook or Google. Among the FANG stocks, with their gigantic market capitalizations, it remains the smallest company on both market value and operating metrics, but it has almost as big an impact on our daily lives as its larger peers.
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In the process, it has also enriched its investors, as its market capitalization climbed to $139 billion in March 2018 and even after the market correction for the FANG stocks, its value is substantial enough to make it one of the largest entertainment company in the world. Netflix (NASDAQ:NFLX) has changed not just the entertainment business, but also the way that we (the audience) watch television. Recently I was engaged with some of my mentees on the idea of Netflix the possible transformation that grew its market capitalization climbing to $139 billion in March 2018. As an investor many a times, the biggest issue is are you investing in productive assets? Seeking long term growth potential? How do you seek out those companies? Revenue per employee targets? Looking to the balance sheet to find the change in book value per share as a measure of ability to add value for shareholders, comparison of book value growth to the returns?income statement measures and the list goes on.
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