NETFLIX, INC.
They first offered their stock on NASDAQ in 2002 at $15 per share. The company’s management was also quick to recognize the increased use of the internet, and expanded their services onto the internet. They still maintained their DVD by mail business, but the online streaming service enabled Netflix to expand beyond the US. As reported by the eFXTo.com this was a good move because DVD sales soon started decreasing as the online streaming service became more popular.
By September 2010, Netflix stock was worth almost $140 from $15 about 8 years before then when shares were first made available through an IPO. In the same year, 2010, Netflix expanded its business into Canada, further raising their number of subscribers. The stock didn’t stop rising, but instead kept growing astronomically to reach more than $300 per share in June 2011. It was amazing how quickly Netflix had grown in less than a decade, registering year after year of profits and a growing subscriber base.
Then, in the 3rd quarter of 2011, between August and November, the company’s stock dropped from $300 to just above $60 per share. In an effort to phase out the DVD by mail service, Netflix introduced Qwikster which was supposed to be the DVD by mail side of Netflix.
People didn’t like the presentation of Qwikster, mainly because it meant higher prices if people still wanted to keep both sides of the service, DVDs and online streaming. In addition, Qwikster seemed like a joke from the way it was presented and many people didn’t like it. This led to Netflix losing 800,000 subscribers from the US, and this caused the loss of revenue and the dwindling stock prices.
The CEO of Netflix, Reed Hastings, admitted the mistake, apologized and agreed to reinstate the previous pricing. If such a blunder happened today, Netflix would not recover, but at the time there was little competition, and Netflix stock recovered somehow. Through 2012, Netflix gradually regained its customer base in the US and adding even more, 2.05 million in the 4th quarter of 2012 alone. Besides, the company had expanded its business to 40 other countries in the world, and this increased a further 1.81 million subscribers.
The release of these figures propelled the share price of Netflix to rise more than 80% to reach 175. The next 3 years would be a continued success for the company, and Netflix shares were trading above $700 by the 13th of July 2015. This made Netflix the 2nd highest traded shares on the NASDAQ exchange, so they decided to split the stock. By splitting the stock, more people would be able to purchase shares without the company losing market capitalization. The split was a 7-for-1 split, and the shares were traded at just below $100 on the 15th of July 2015.
For the next year, shares kept around the $100 mark until the 17th of October when the company released its Q3 earnings report showing revenues above $2 billion. Share prices jumped 20% from below $100 to around $127 in a few days. Since then, the company’s shares have been rising continuously as the company’s subscriber base grows and popularity of its shows rises. At the moment, one share of Netflix stock is trading above $140 and expected to rise through the year.
Then, in the 3rd quarter of 2011, between August and November, the company’s stock dropped from $300 to just above $60 per share. In an effort to phase out the DVD by mail service, Netflix introduced Qwikster which was supposed to be the DVD by mail side of Netflix.
People didn’t like the presentation of Qwikster, mainly because it meant higher prices if people still wanted to keep both sides of the service, DVDs and online streaming. In addition, Qwikster seemed like a joke from the way it was presented and many people didn’t like it. This led to Netflix losing 800,000 subscribers from the US, and this caused the loss of revenue and the dwindling stock prices.
The CEO of Netflix, Reed Hastings, admitted the mistake, apologized and agreed to reinstate the previous pricing. If such a blunder happened today, Netflix would not recover, but at the time there was little competition, and Netflix stock recovered somehow. Through 2012, Netflix gradually regained its customer base in the US and adding even more, 2.05 million in the 4th quarter of 2012 alone. Besides, the company had expanded its business to 40 other countries in the world, and this increased a further 1.81 million subscribers.
The release of these figures propelled the share price of Netflix to rise more than 80% to reach 175. The next 3 years would be a continued success for the company, and Netflix shares were trading above $700 by the 13th of July 2015. This made Netflix the 2nd highest traded shares on the NASDAQ exchange, so they decided to split the stock. By splitting the stock, more people would be able to purchase shares without the company losing market capitalization. The split was a 7-for-1 split, and the shares were traded at just below $100 on the 15th of July 2015.
For the next year, shares kept around the $100 mark until the 17th of October when the company released its Q3 earnings report showing revenues above $2 billion. Share prices jumped 20% from below $100 to around $127 in a few days. Since then, the company’s shares have been rising continuously as the company’s subscriber base grows and popularity of its shows rises. At the moment, one share of Netflix stock is trading above $140 and expected to rise through the year.
