SAN FRANCISCO (Reuters) – long-term shareholders of Netflix (NFLX.Oh, and the end of December has been a very rewarding year.
The Netflix logo is shown in this illustration photograph in Encinitas, California October 14, 2014. REUTERS/Mike Blake
Shares of video-streaming a heavy weight have increased more than 4.100% since the end of 2009, the S&P 500’s top performer over the last 10 years. Analysts usually recommend that investors keep buying stocks, even though the Los Gatos, Calif., the company is facing increased competition, and questions about whether it will be able to maintain the rapid growth of the user.
(ILLUSTRATION: the Top of the S&P 500 performers of the last decade – here).
(IMAGE: “the Current S&P 500 components,” the worst performers of the decade here).
FOR TEN YEARS, AND THE WORST OF THE LOSERS GRAPHIC
The dramatic rise of Netflix’s business and the market price of the company as a part of the so-called INTERNATIONAL quartet of high-growth stocks, along with Facebook (FB.(O) Amazon.com (AMZN.Oh and Google, the owner of a-z (GOOGL.D) that, under the ban, and investors well for many of Wall Street’s rally over the past few years. Netflix has expanded its subscriber base to 12 million by the end of 2009 to 158 million, and in September of the previous year.
However, at the beginning of 2010 with the mailing of the Dvds to customers, it was still a big part of Netflix’s business, and the average analyst recommendation on the company to “hold,” and that’s what makes it one of the S&P 500 stocks least favored by analysts at the time.
And as the top overall performer, over the next ten years, Netflix was the S&P 500, the strongest annual performance in 2010, 2013 and 2015, with the gain of 219%, 298%, and 134% in each of those years, respectively.
(ILLUSTRATION: the Top of the S&P 500 performers of the year here).
The S&P 500 component, results in the index for more than a year in the past ten years, chipmaker Advanced Micro Devices (AMD.(O), which rose from 80% last year and is on track to get to 132% in 2019. More than 340% as of the end of 2009, AMD’s recent surge marks a comeback after a slowdown in personal computer sales in the first half of the decade, many investors have doubts as to whether the chipmaker could survive in the shadow of the semi-conductor giant, Intel (INTC.D).
Under its Chief Executive, Lisa Su, who took over at the end of 2014, AMD stopped losing money and is expected by analysts to expand its bottom line by more than 40 percent by 2019, according to Refinitiv.
After the superb performance in the stock market, Netflix is now struggling with slowing subscriber growth, the ballooning cost of content production, and competition from Walt Disney’s (DIS.And other services as well. With Netflix, this is an increase of 24% in 2019 and fall short of the S&P 500’s 28% gain analysts, on average, are now recommended for the purchase of the shares. The stock continues to fall up to 20% of the record high close of July, 2018.
The S&P 500 is the second strongest performer of the decade, the electronic bond trading system operator MarketAxess Holdings Inc (MKTX.O), up more than 2,600%, followed by medical devices maker, Abiomed (ABMD.(O), which has skyrocketed more than 1,800%.
In ninth place is Ulta Beauty (ULTA.Oh, they have flourished, even as the other shopping mall retailers, it is difficult to get off of Amazon, and it is up 1,280% in the last ten years. Amazon’s (AMZN.D) it clocks in as the decade of the 11th century, to the holders of the S&P 500, the contractor, the acquisition of 1,232%.
Investors to buy the stocks most highly rated, on average, by analysts at the beginning of the decade, and to keep them through 2019 at the latest, usually it would be to have it done right. However, investors buying and holding the stocks of the least liked by analysts, by the end of 2009, also performed well.
(IMAGE: the Analysts’ top picks are at the beginning of the decade – here).
Under the current S&P 500 components, Incyte (INCY.D), CMS Energy (CMS.(N), J M Smucker (SJM.N) and United Airlines (UAL.(O), and Delta Air Lines (DAL.(N) the stocks with the highest overall analyst rating at the end of 2009, and of these, only the J M Smucker underperformed the S&P 500 total return by more than 250 per cent during the period, including dividend payments. The five levels are least liked by analysts at the beginning of the decade, and were Ameren (AEE.(N) Brown-Forman (BFb.N) Apartment Investment and Management Co (AIV.D), Pennsylvania, (the boat yard.N) and American International Group (AIG.And of those, only AIG underperformed the S&P 500.
As the decade nears its finish, which is just a stock in the S&P 500 has an average analyst rating of “sell it”: Franklin Resources (BEN.(N), the holding company that owns Franklin Templeton Investments. Eight analysts recommend the sale to Franklin Resources, while six are neutral and will not recommend anyone to buy it, according to the Refinitiv of the data.
Reporting by Noel Randewich; editing by Alden Bentley, Megan Davies and Dan Grebler