Netflix likely topping out

NETFLIX (NASDAQ: NFLX) exhibits a story of adapting to the world of the internet age in the post-dotcom era. Founded in 1997 as a DVD sales and rental services brick-and-mortar shop, Netflix introduced a subscription-based revenue model. It proved to be a success, paving the way for the rise of other streaming services such as YouTube and Amazon.com's Prime Video.

In 2012, Netflix launched the first of what would later come to be known as "Netflix Originals" - content produced by its in-house unit. It expanded worldwide the following year.

As the company expanded, it accumulated debt that was in excess of US$16.8 billion in 2016 and US$21.9 billion in 2017. Even so, the outlook for Netflix remained positive and the stock began entering a phase of exponential growth from US$185.78 in end-2017 to US$423 per share in mid-2018. The rally proved to be short-lived, however. The stock fell from a high of US$423 to US$231.23 by Christmas 2018.