Since its initial public offering in 2002, Netflix stock has surged 23,714%.
That makes it one of the very BEST performing stocks of the last 16 years. Now, the big gains for Netflix have already happened.
This upcoming IPO is the Netflix of music – and you can BUY stock before the IPO. Go here to discover this pre-IPO secret.
Here’s Netflix stock performance over the last 15 years.
Now, I’m pretty familiar with Netflix. In fact, I bought the stock six years ago . . . and I’m currently sitting on HUGE 2,638% profits.
Netflix isn’t expected to go up another 100% or 300% in the next year. But the next Netflix could see its shares surge after the IPO.
Buying the Next Netflix
Netflix currently has nearly 110 million paying subscribers. Those members paid an average of $9.58 per month during the last quarter, generating $3.2 billion in revenues.
When it comes to online video, Netflix is king, crushing attempts by Apple, Amazon and other venture capital funded startups.
In the music business, Spotify is the leading online music streaming service. It provides members with access to +3 million songs on demand, for less than $10 per month.
It was recently reported that Spotify had 70 million paying subscribers. Plus, an additional 90 million free members.
Spotify Pre-IPO Shares – Now Available
The market capitalization of Netflix stands at $125 billion. That means each current subscriber is valued at $1,130.
Meanwhile, Spotify is currently valued at $20 billion. And that means the stock market and investors are valuing each Spotify subscriber at just $285.
How’s it possible that Netflix is worth 4x more, on a per subscriber basis? It’s difficult to understand.
After all, Spotify members pay similar fees as Netflix members. Spotify has grown the paid membership from 60 million to 70 million in just 6 months. And music is a HUGE business.
Perhaps Netflix is more of a household name. The company is more established and is now profitable.
Another factor is that there’s occasionally a big disconnect between pubic markets where Netflix trades, and private markets for companies like Spotify.
Once Spotify goes public, I’d expect the share price to more closely reflect the Netflix valuation.
Instead of a $20 billion market value on the private market, Spotify could be worth nearly $80 billion if its subscribers were given a similar value.
What’s the true value of the Spotify IPO? We won’t know until the “next Netflix” goes public. That’s when the markets will determine “fair value.”
Access next week’s webinar for a full briefing on Spotify.
Right now, you can access dozens of A+ privately held companies, including Spotify, Dropbox, Lyft and Palantir. Plus, you can get in BEFORE the IPO.
Yours in Profits,