NFLX · Netflix
Netflix, the 2011 price change and Qwikster: the stock, 2010 to 2011
2010–2011 · 5.7× (+470%), then −80%
For scale: buying every US stock breakout from 2018 to 2026 with no selection returned a median −22.6% a year later, measured on the 14,674 with a full twelve months of data. How it was measured
At the start of 2010 Netflix was a DVD-by-mail company with a growing streaming service. On 27 January 2010 it reported 2009 revenue of $1.67 billion, up 22%, net income of $115.9 million and 12.27 million subscribers at year end, and guided to between 15.5 million and 16.3 million subscribers by the end of 2010. The stock climbed from there to a peak in July 2011.
On 12 July 2011 Netflix split its $9.99 plan for streaming plus one DVD at a time into two $7.99 plans, so a member who kept both would pay $15.98, 60% more. On 18 September Netflix's Reed Hastings apologised for how the change had been handled and said the DVD service would become a separate business called Qwikster. Netflix dropped Qwikster on 10 October 2011 but kept the new prices. From January 2010 to the November 2011 low, the stock's path reads 5.7× (+470%), then −80%.
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Sources: Netflix Q4 2009 release, 27 Jan 2010 · CNN Money, 12 Jul 2011 · GeekWire, Sep 2011 · Stratrix, Netflix and Qwikster. Price figures are split-adjusted, not dividend-adjusted.
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