Netflix’s stock among the leaders in S&P 500
Netflix’s (NFLX) investors had a great year as the streaming entertainment company’s stock soared in 2015. Netflix’s stock price rose by 135% in 2015, putting it among the leaders in the S&P 500 Index. This indicates that Wall Street investors remain bullish on the stock.
As the chart below shows, the SPDR S&P 500 ETF (SPY) fell by 2.18% in its year-to-date performance. Netflix’s competitors Amazon (AMZN) and 21st Century Fox (FOXA) have lagged behind in their year-to-date stock price performance. Amazon’s stock price rose by 118.7% in 2015, and 21st Century Fox’s stock price fell by 30.2%.
Why is Netflix’s stock on the rise?
Investors seem to remain bullish on Netflix’s stock because the company took a variety of initiatives in 2015 to boost its subscriber growth in the US and internationally. These actions include continuing its spree of international expansion, using its new video encoding technology that has low data usage, and producing more original content.
We will explore Netflix’s business initiatives and key strategic events in detail in this series.
Netflix makes up 0.92% of the PowerShares QQQ Trust Series 1 ETF (QQQ). QQQ also holds 4.93% of Alphabet (GOOG). For an investor interested in exposure to the Television & Radio sector, QQQ has an exposure of 4.37% to the sector.