How Long Can NFLX’s Winning Streak Last?

For years, individual and professional investors alike have told me that the stock market winning streak will end soon. When I ask them what catalysts will trigger the end, though, the most common response I hear was time and performance.

But the last time I checked, a bull market has never died of old age. And performance will also never be a reason for a rally to end. Some may argue that valuation is tied to performance, but in reality that simply isn’t true.

I bring this up today because I want to discuss Netflix (NASDAQ:NFLX). The media streaming giant that has been on a decade-long winning streak and gained more than 7,000% in that time. Similar to a bull market, an individual stock rally will not die because it has performed too well or gone on too long. In fact, I believe NFLX stock’s winning streak will continue into the foreseeable future.

Long Live the NFLX Stock Rally

NFLX stock has turned average investors into millionaires over the last 10 years. And the company still has many more avenues of growth to explore. Global expansion is one of its biggest opportunities right now as emerging countries begin to embrace streaming services thanks to the expansion of faster internet speeds into more rural areas around the world. Considering Netflix is at the forefront of this trend, it stands to benefit greatly.

To showcase just how far the company has come in the last decade, let’s consider the recent Emmy Awards. Netflix, which began as a DVD delivery service, morphed into an online streaming service and has now become a premier content developer, became the first streaming company ever to take home top honors. It tied HBO with 23 awards.

Looking out over the next 10 years, it’s impossible to guess where NFLX will be. It could become the leading network on what will likely be an all-internet media platform. Or it may be the top movie studio in the world.

What I do know is this — Netflix has been able to continually pivot its business model to keep up with changing times and technology, and I do not see that ending any time soon. As far as I’m concerned, this stock still has a long way to climb.

Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of FUTR Stocks and the ETF Bulletin. Matt just launched two new investment advisories focused around the “next” generation investing theme. His trademark three-prong investing approach targets the mega-trends old Wall Street is missing out on. Click here for more information on the “NexGen” Experience.


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