How to buy Netflix shares

Streaming entertainment service is developing rapidly today. In this regard, Netflix public company is very attractive for investment. The company was founded in the United States in 1997. Reed Hastings and Marc Randolph launched this startup with the aim to rent DVDs that were mailed to customers. By 1999, the company was sending 10,000 parcels daily. Then, Netflix launched a new service. It was pay-per-view movies and TV series on-demand, with an hourly rate. At the start, only about 1 thousand videos were available to users.

Netflix is now experiencing its best times, and its shares are actively traded on the largest world stock exchanges. By 2010, about 10 million people became users of this streaming video service. Then, the American company enters the international financial market. In 2013, the company began producing its own films and series, which made Netflix shares price go up.

The IPO took place on May 29, 2002, and at that time, the price of a share was $ 15. Additionally, 825,000 securities were issued on June 14 of the same year. Since the company went public, its shares gained more than 2000% of initial market valuation.

The first split of shares took place on February 12, 2004. It was realized in a 2 to 1 ratio, that is, 1 security was replaced by two. The second split took place on July 15, 2015, using a 7 to 1 ratio.

Netflix Inc. issued 439.804 million shares, each of which gives the owner the right of 1 vote at the shareholders' meeting. More than 90% of shares are in free circulation - over 400 million securities are traded on stock exchanges. Today the market capitalization of Netflix, Inc. is $ 220 billion.

Information about the Netflix shares on the platform
Information about the Netflix shares on the platform

How to invest in Netflix shares

Unfortunately, currently, Netflix does not pay dividends. But there are other ways to get a variable income on the securities of this company. You can purchase shares for its further resale, or you can earn on CFD trading.

Every retail investor has the opportunity to take long-term, medium-term or short-term trades. If the forecast is correct, your investment strategy will bring variable income, the amount of which depends on market factors, lot size and trading conditions.

When determining the possible value of a Netflix share, you must learn to apply technical analysis. Oscillators and other chart tools can help with this. They reflect the patterns of financial markets and allow you to more accurately predict the dynamics of securities. But technical analysis can never be the only source of forecasts. The company's performance will help determine whether to buy shares. Before making a buy or sell deal, you need to carefully study the financial report and information background around the business.

It is much more profitable to trade this asset online. In this case, you do not need to worry about fluctuations of shares value. After all, you can make a profit both with an increase and a fall of securities. CFD trading is convenient due to leverage and wide opportunities for using trading strategies. And to make a profit, you can open deals with any expiration time - from a few minutes to several months. 

How to invest in Netflix shares
How to invest in Netflix shares

Netflix shares Investment Platform

Netflix shares can be found on the NASDAQ under the NFLX ticker. Online trading starts at 09:30 and ends at 16:00 (GMT-04: 00 in summer, and GMT-05: 00 in winter). The company's securities are also traded on the stock exchanges of Germany, Brazil, Mexico, Austria, Switzerland and Argentina.

If you've made the decision to buy Netflix stock, take a look at the two methods below: 

  • Purchase on a specialized site – stock exchange.
  • Purchase through an intermediary – an online broker.

Due to the fact that the price of Netflix shares in each of these cases is approximately the same, the main criterion for choosing the optimal variant is the simplicity of the procedure. According to experts, the best way to buy Netflix stock is to use the services of a brokerage company.

Netflix Equity Trading Platform
Netflix Equity Trading Platform

How to start investing in Netflix shares

Due to the fact that the stock quotes are quite high, only giant investors can buy Netflix shares. Individuals must find a broker to get access to real time online trading. All transactions with the financial instrument NFLX, including market order and limit order, are carried out through the trading terminal. To do this, you need to have a verified trader profile with an open brokerage account. The money from the transaction will be credited to the trader's account immediately after the order is closed. 

How to buy Netflix shares
How to buy Netflix shares

How to register

Creating a profile on the platform is simple and fast. After you have selected a broker, you need to visit its official website and officially register. Usually, it is enough to state your user name, password and email to be admitted to the trading terminal. All brokers provide free of charge registration.

How to register
How to register

How to open a demo account

A demo account is a must-have feature of a reliable broker. Experts suggest each novice should train well before making real money investments. Trading is not a game, and you need to learn to apply technical and fundamental analysis to predict the price direction. To master these skills, you need to try trading with virtual money to see if you can succeed in real life.

How to open a real account

A real account is a paid service. To activate it, you need to replenish your deposit. Every broker has its own requirement regarding the sum. Some brokers allow opening an account with a symbolic price like $10, while others require up to $1,000.

How to open a demo or a real account
How to open a demo or a real account

How to fund a deposit

Modern brokers make payments convenient for their clients. They introduce a wide range of payment options. Usually, traders can always find a suitable channel – a bank transfer, a bank card or e-payments.

Minimum deposit amount

This information is shown on the official site of the brokers. On one site, you can open an account with only $10, while other platforms will ask you to deposit from $100 to $1,000.

Deposit replenishment
Deposit replenishment

How to withdraw money

You can ask for your earnings to be sent to your account at any time via the same channels that you used for depositing funds. However, only verified traders are allowed to apply for money withdrawal. The verification procedure can be completed either at the registration stage or anytime later. To pass verification, you must provide copies of documents proving your identity and home address.

Security of Netflix share Investments

Netflix's streaming service has grown in popularity during the coronavirus pandemic. The company increased its subscriber base by 28.1 million in the first nine months of last year. The number of people using the services of the American corporation on a paid subscription increased to 195.2 million people by the beginning of October 2020.

For the last quarter of 2020, Netflix declared a net income of $ 790 million, or $ 1.74 per share. Revenue increased to $ 6.44 billion from $ 5.25 billion in the same period in 2019. Netflix stock is up about 46% over the past 12 months.

How safe is it to invest in Netflix shares

Netflix is one of the few technology companies that has been able to stay afloat after the early 2000s. Today Netflix is the world leader in online entertainment content, and its shares grew 373% from 2016 to 2020. 

Netflix has big and long-term prospects, believing that today's investment will be tomorrow's profit. Therefore, Netflix is ​​investing in studios to gradually take its place in the world of cinema. Streaming movies can breathe new life into the sector. 

In addition, Netflix and Hollywood studios have partnered to bring out the best talents and improve the working and financial conditions of film professionals. In retrospect, buying Netflix stock should be the right decision despite short-term ups and downs.

Is it safe to invest in Netflix shares online

The main task of each trader is to select a proper broker. It is unlikely that any broker will tell you it is unreliable, everyone assures clients exactly the opposite. But statements and advertisements are not always true. What is the ideal broker for novice investors and traders? What parameters should be taken into account? 

  • good trading conditions;
  • smooth performance of trading platforms;
  • extensive experience, professionalism and efficiency in the work of the brokerage company's staff;
  • the legality of the company (legal status, licenses, place of registration, availability of an office).

First of all, you should consider the terms of trade - because if they do not suit the trader, everything else no longer makes sense. Terms of trading include the minimum deposit, types of the deals, size of leverage, number of trading assets, risk strategies, analytical tools, payments options, fees and commissions.

The best way to form an objective opinion about a broker is to have direct experience with it. The trader will get a complete picture of the level of service provided by the broker by opening a demo account and working on it. Online trading is always associated with a high level of risk. So choose your intermediary responsibly.

My investments in Netflix shares are protected

If you plan to make money on investments in Netflix shares, then it is vital for you to know the factors that can have a serious impact on their value. Among the key factors influencing the value of Netflix stocks are:

  • Changes to current US tax laws.
  • Legal proceedings involving the company.
  • Sanctions imposed by the United States in relation to other countries.
  • The reports on the financial situation of the company, as well as the forecasts of leading analysts.

FAQ:

Can you buy Netflix shares?

You will need to do a little research about the company to see if it matches your investment expectations. The main thing you should know is that the corporation does not pay dividends. So the main source of income will be the sale of shares at a higher price or CFD trading. If you are fine with these options, then you need to find a reliable online broker and open an account on its platform.

Netflix is one of the world leaders in the Internet TV sector. The company is actively developing, Netflix shares are growing in price and are an attractive investment tool. The resale of Netflix shares can bring a really high income, as their value grows much faster than the main stock indices.

Netflix shares can be obtained on the NASDAQ under the NFLX ticker. Individuals do not have direct access to this platform and need to make an agreement with an online broker that will provide access to this asset.

Netflix shares are worth $ 497.98 for the previous trading day.

Yes, you can buy even one Netflix share.

Despite the fact that the company is developing quite rapidly, its management prefers to invest the lion's share of the earned funds in further development. For this reason, no dividend yield is paid to Netflix shareholders. So the only available option to earn some money is buying shares with the aim of their subsequent resale.

Residents of South Africa can buy Netflix shares from brokerage companies that have access to the US stock market. When selecting an intermediary, focus on the platforms with high leverage, low commissions and minimum starting investments.

Company shares have considerably grown over the past year, and even outperformed the expectations as people were forced to stay at home because of the pandemic.

COVID-19 affected all businesses around the globe, and Netflix was no exception. In summer 2020, its shares dropped unexpectedly, but the company could quickly recover this period.

Netflix is up 63% this year as the streaming service gained 28.1 million new subscribers in the first nine months of 2020. The demand for home entertainment was significantly driven by COVID-19 quarantine.

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