Here's My Top Stock to Buy in February

Subscription streaming-video giant Netflix (NASDAQ: NFLX) has been a remarkably successful company since its founding, and its stock price has been a massive outperformer. The stock has risen approximately 333-fold since its initial public offering on May 23, 2002. That is a 38.8% average annualized return for almost 18 years, and good enough to have turned a $10,000 investment into over $3.3 million.

But the past is in the past. The more important question is: What's still to come for this stock?

Netflix ended last year with 167 million paid subscribers, but that is only scratching the surface of its long-term global opportunity. There are an estimated 1.7 billion households in the world, excluding China where Netflix doesn't operate. Assuming a 0.9% annual population growth rate, that figure would be closer to 2.1 billion in 20 years. By then, the vast majority of those households should have fixed broadband or other high-speed internet connections. If the broadband penetration rate is an estimated 80% by then, there would be over 1.6 billion internet-connected households. That means Netflix's current 167 million subscribers is only about 10% of its long-term global opportunity.

Source Fool.com