Here is what stock you would have enriched if you had invested $ 1,000 10 years ago



[ad_1]

Of all the big tech companies, investors tend to want to make the decision in advance, Apple and Netflix are certainly part of the group.

By comparing the two side by side, Netflix would have brought you more money if you invested ten years ago. An investment of $ 1,000 in Netflix in 2009 would represent nearly $ 47,400 as of September 12, 2019, for a total return of approximately 4,640%, according to CNBC calculations.

If you invest $ 1,000 in Apple during the same period, your investment would be close to $ 10,400, for a total return of approximately 940%. In comparison, a $ 1,000 investment in the S & P 500 would have generated a total return of nearly 255% over the same period. Although Netflix and Apple stocks have performed well over the years, any individual stock may outperform or underperform and past performance may not predict future results.

The difference between the two investments is more than $ 37,000.

CNBC: Apple Action on September 13, 2019.

This week, Apple announced the launch of its Apple TV + service, which will be available November 1 in more than 100 countries and will cost $ 4.99 per month. Almost immediately, rumors began to arise about whether Apple TV + would pose a threat to other competing streaming services, such as HBO, Disney and Netflix.

Priced at $ 4.99, this is almost half the price of $ 9.99 expected by analysts. Since Netflix has increased its price by 18% at the beginning of 2019, from $ 10.99 to $ 12.99 for its standard plan, the cost could ultimately be a decisive factor for users when choosing between the two. .

Nevertheless, opinions are divided as to the impact of Apple TV + on Netflix's performance. Although both programs are programmed to offer ad-free entertainment, the actual content proposed is very different. Unlike Netflix, Apple TV + will not have full-season broadcasts, making it a less desirable choice than Netflix for burst viewing. Instead, Apple TV + is launching nine original series and Apple has confirmed that five more shows would be added in the months following its launch. According to the Apple Press Room, most shows will be broadcast in three episodes, with new weekly episodes.

"I think they're very deliberate in the initial selections and genres that they've followed," said Simon Gallagher, former director of content acquisitions at Netflix, in a recent interview with " Squawk Alley "on CNBC." They have popular genres with an absolute marquee, the best talent of the breed, "

He added: "You've seen Showtime and HBO, it only takes a few shows each season to encourage people to keep their subscription, and I think that Apple will be quite able to do it with the current lineup in place. "

CNBC: Netflix Shares on September 13, 2019.

Although Apple's announcement has brought Netflix shares down 2%, it's still too early to say whether the reach of the Apple brand will be enough to defeat Netflix, all the more so. that he joins the game streaming so late.

However, Apple's plan is partly to rely on the popularity of its devices to build a large user base, TV +. With some Apple devices, users will receive a free full year of Apple TV +.

Despite the new competition, Netflix has performed well for applications and has recently announced a series of TV shows and original films expected to be released in late 2019.

In the future, the real challenge will be Netflix's ability to maintain its subscribers and help its actions to rebound. Since the release of the second quarter results showing a loss of more than 100,000 US subscribers, Netflix shares have fallen by nearly 20%.

So while Netflix investment returns over the last 10 years outweighed those of Apple, its stock must rebound for Netflix to maintain its lead.

If you plan to invest, experts often advise starting with index funds, which hold all the stock of an index, such as the S & P 500. The seasoned investor Warren Buffett agrees that It is wise to start, in part, by index funds. because they fluctuate with the market, making them less risky than individually selected stocks.

Here is an overview of the current market situation.

Do not miss:

Do you like this story? Subscribe to CNBC Make It on YouTube!

Getty | NurPhoto / Contributor; Getty | SOPA Images / Contributor

[ad_2]

Source link