Netflix Shares Up 48% in Past Year

By Douglas A. McIntyre Updated Jan 13, 12:16PM EST · Published Mar 7, 7:12PM EST

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Netflix Shares Up 48% in Past Year — © courtesy of Netflix Inc.

Despite a recent sell-off due to analyst concerns, shares of Netflix Inc. (NASDAQ: NFLX) have risen 48% in the past year, compared to a 4% dip in the S&P 500. Over the period, Netflix has added over $10 billion in market cap. The primary reason is that Netflix still rules the premium content streaming business, despite plenty of competition.

Granted, Amazon.com Inc. (NASDAQ: AMZN) and Apple Inc. (NASDAQ: AAPL) have products to challenge those of Netflix, as do cable, fiber to the home and satellite TV providers. That has not stopped the company’s revenue from rising from $3.6 billion in 2012 to $6.8 billion last year. Over the same period, net income rose from $17 million to $123 million.

Morningstar analyst Neil Macker wrote:

Already the largest provider in the U.S., Netflix is expanding rapidly into markets abroad. The firm has used its scale to construct a massive data set that tracks every customer interaction. It then leverages this customer data to better purchase content and produce original material such as “Orange Is the New Black”. We believe that this data and ability to leverage will help Netflix to remain the largest provider in the U.S. and enjoy success in many of its newer markets.

[nativounit]
That nicely sums up the consensus that has driven Netflix shares so much higher.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.