Netflix Inc. (NASDAQ:NFLX)

The analysis of the annual financial data reveals several notable trends concerning the share price, operating profit per share, and the price-to-operating profit (P/OP) ratio over the specified periods.

Share Price (US$)

The share price exhibits a general upward trajectory from March 2006 through January 2025, starting at $0.36 and increasing substantially to $97.19. There are periods of pronounced growth, particularly between 2012 and 2018, where the price rose from $1.77 to $28.46, and again from 2023 to 2025, with a rise from $36.49 to $97.19. Some fluctuations are evident, such as a decline from $53.86 in 2021 to $36.49 in 2023, indicating intermittent volatility within the broader growth trend.

Operating Profit per Share (US$)

The operating profit per share shows consistent growth over the entire period, increasing from zero in 2006 to $2.44 by 2025. Growth is particularly strong from 2014 onwards, with the profit per share progressing from $0.19 in 2018 to $2.44 by 2025. Occasional minor declines appear, for instance in 2013 and 2023, where the values dipped slightly, but the overall trend remains markedly positive.

P/OP Ratio (Price to Operating Profit per Share)

The P/OP ratio displays considerable volatility throughout the analyzed years. Initial ratios start exceedingly high at 466.86 in 2006, drop sharply to the twenties from 2007 through 2010, and then fluctuate considerably, reaching peaks such as 184.25 in 2013 and values above 100 in several years. From 2015 onward, the ratio generally declines, settling in the range of mid-twenties to close to 40 by 2025. This downward trend suggests a market adjustment where share price increases become somewhat more aligned with the rising operating profits, indicating improved valuation rationality over time despite periodic spikes.

In summary, the data signals robust growth in both share price and operating profit per share, coupled with a trend towards valuation normalization as seen in the P/OP ratio movements. Volatility is present but does not detract from the overall positive progression in profitability and market capitalization.