<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Netflix has grown exponentially over the past two decades, but not in a straight line.</li><li>The company has made some mistakes, but it has recovered and gone on to reach new heights.</li><li>The stock's valuation isn't too high these days, either. </li><li>10 stocks we like better than Netflix ›</li></ul>It's fun to play what-if games with stocks -- unless doing so makes you cry. And this one might: What if you'd invested $1,000 in shares of Netflix (NASDAQ: NFLX) 20 years ago?Here's a look at the answer.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MDE1MS9nZXR0eS1zdXJwcmlzZWQtd293LWFtYXplZC1vcGVuLW1vdXRoLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MDE1MS9nZXR0eS1zdXJwcmlzZWQtd293LWFtYXplZC1vcGVuLW1vdXRoLmpwZyZ3PTcwMA"/>Image source: Getty Images. If you had plunked $1,000 into Netflix 20 years ago, in 2006, that stake would now be worth $227,855. Jeepers, right? That's a total gain of 22,676%, and an annualized gain of 31.17%. In contrast, the S&amp;P 500 index (consisting of 500 of America's biggest companies) averaged only 9.1% (or 10.4% with dividends reinvested), turning $1,000 into $5,712 (or $7,253, with dividends reinvested). Those are still respectable numbers for the S&amp;P 500, but Netflix blows them away.Remember, though, that 20 years ago it wasn't clear just how terrific a performance Netflix would deliver. In 2011, for example, it announced that it would split its operations in two, focusing on streaming and labeling its DVDs-by-mail business Qwikster. Its shares sank more than 75% and the company lost millions of customers. It wouldn't have seemed unthinkable to sell your shares then, if you had lost faith in the company. Good companies do make occasional mistakes, though, and they often rise above them, as Netflix did.It went on to become a major producer of original content for its streaming business, and it successfully added many more subscribers. Netflix now boasts that &#34;We are entertaining over half a billion people in more than 190 countries and 50 languages...&#34; The company is raking in ad dollars, too, now that it's showing ads to some subscribers -- with $3 billion expected in 2026.Is Netflix worth investing in now? Well, maybe. Its shares are not exactly cheap, but they're not wildly overvalued, as they often have been, either -- with a recent forward-looking price-to-earnings (P/E) ratio of 30, a bit below the five-year average of 32.<h2>Should you buy stock in Netflix right now?</h2> Before you buy stock in Netflix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $503,861!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,026,987!* Now, it’s worth noting Stock Advisor’s total average return is 884% — a market-crushing outperformance compared to 179% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of March 29, 2026. Selena Maranjian has positions in Netflix and Warner Bros. Discovery. The Motley Fool has positions in and recommends Netflix and Warner Bros. Discovery. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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Netflix has seen significant growth over the past 20 years, with a $1,000 investment in 2006 now worth $227,855, reflecting a total gain of 22,676% and an annualized gain of 31.17%. In comparison, the S&P 500 averaged a much lower return. Despite past mistakes, Netflix has rebounded and expanded its subscriber base, now reaching over half a billion people globally. While its current valuation is not excessively high, analysts suggest considering other stocks for investment, as Netflix was not included in a recent top 10 list of recommended stocks.

- Netflix has shown significant growth over the past 20 years, turning a $1,000 investment into approximately $227,855, which is a total gain of 22,676%.  
- Despite past mistakes, including a drastic stock decline in 2011, Netflix rebounded and now has a robust subscriber base, generating substantial ad revenue.  
- Currently, while Netflix shares are not extremely overvalued, they are not recommended as a top investment compared to other stocks identified by analysts.

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Roundhill NFLX WeeklyPay ETF

First Trust S-Network Streaming and Gaming ETF

Direxion Daily NFLX Bull 2X Shares

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If You'd Invested $1,000 in Netflix (NFLX) Stock 20 Years Ago, Here's How Much You'd Have Today (Spoiler: It Might Make You Cry)