Why Netflix Still Has Room to Grow
Streaming service Netflix (NASDAQ: NFLX) has experienced huge growth over the last six months, as the coronavirus pandemic has kept more and more people at home. However, rival Disney (NYSE: DIS) has also benefited from this surge in streaming subscribers. As more choices pop up and potential subscribers are lured into signing up, has first-mover Netflix peaked in its growth? Not by a long shot.
Image source: Netflix.
Netflix was one of the first companies to offer on-demand, streaming content, and its strong market position is evident in its numbers. The company has years of consistent revenue growth under its belt, expanding from $6.78 billion in annual revenue back in 2015 to $20.15 billion by 2019. The company has also kept a lid on its operating expenses, slowly growing its operating margin from 5% to 13% over the same period. Most impressively, Netflix has increased its net income even more dramatically over that period, growing from $122 million in 2015 to $1.86 billion last year.
Source Fool.com
