The leader in streaming service with more than 185 million subscribers, Netflix is a solid company to invest on stocks. Do you know how to?
We prepared you a guide discussing the background and stock outlook of Netflix plus a simple step-by-step on how to trade Netflix stocks.
Sector: Communication Services
Experiencing huge growth since its IPO back in 2002, selling at $15.00 per share, Netflix has become one of the most sought after publicly traded companies in the world.
It's no wonder smart investors are always looking to include NFLX on their trading portfolios.
From a successful venture distributing independent films to maintaining its entertainment dominance through a series of effective rebranding and continued growth producing original content, Netflix continues to meet the ever-evolving consumer demands with flying colors.
And get this:
Despite of several competitions that sprung up in recent years, Netflix continues to enjoy unmatched dominance in the market of online content streaming and producing original movie and series content.
Before dipping into the world of stocks trading, you need to set a financial goal and craft a plan based on your current financial situation. Additionally, you must make sure to cover all bases with regards to the company stock you’re looking at. Otherwise, with our guidance, you’re good to go.
In this article, we’ll help you familiarize yourself to the strong points of Netflix as a stock option as well as certain risk, if any. We will also supply you with information on how to trade Netflix stocks.
And there's more...
We’ll also introduce you to some top brokerages in the market today which have vast experiences in trading stock CFDs and uses the best technology platforms that are best suited to reap the benefits of this financial instrument.
And to make your financial decisions easier, we’ll also offer our unbiased forecast and outlook on what kind of future awaits Netflix in the stock market world.
If this excites you already, then let’s get the ball rolling.
Table of Contents
- Why Trade Netflix Stock?
- Netflix Stock Performance
- Netflix Stock Forecast
- How to Trade Netflix Stock?
- Frequently Asked Questions (FAQ)
- Best Brokers for Trading Netflix Stocks
Why Trade Netflix Stock?
Before deciding to start trading or selling Netflix stocks, it is important that you not only learn more about the company but also understand certain factors that could affect its market value.
It is important for you to understand the history and business model of Netflix.
To begin with...
Netflix maintained its dominance in the entertainment industry by constantly revolutionizing the way of distributing online content to a fast-evolving market through its wise use of technology.
The Netflix platform has paved the way for the modern habit of viewing original content through online streaming. Netflix's almost 200 million subscribers are the product of its proven business model.
While Netflix started out distributing movies through DVD and Blu-Ray rentals, it has transitioned into the world's leading provider of online content.
Their trademark "Netflix Original" gave birth to many highly-acclaimed original shows and movies.
When Netflix aren't producing content to stream on their platform, movie production companies and TV Networks reach out to them to include their films and shows in the Netflix roster of content.
This makes it possible for the company to widen its audience worldwide and grow revenue.
As of the date of this publication, Netflix has an ongoing licensing rights deals with several Film studios like Relativity Media, Rogue Pictures, Walt Disney Television, Sony Pictures Entertainment, Warner Bros. Television, CBS Television and more–allowing Netflix to stream the content of these entertainment giants to subscribers worldwide.
In addition to this...
Netflix uses consumer data in helping them come up with ideas for their original content.
Some of the best series in recent years like House of Cards, Orange is the New Black and Stranger Things – just to cite a few–are the result of this consumer-driven strategy, thus allowing Netflix to remain a runaway leader in the field of online streaming service.
Aside from producing original content, Netflix pushed the envelope once again when it released an interactive content allowing the viewers to make their own choices on how the story should proceed. The most popular of these releases was Black Mirror: Bandersnatch.
Netflix may have started with only $15.00 per share totaling 5.5 million shares when it initiated an IPO on May 29, 2002. Since then, Netflix surged to its then all-time high of $301.05 in 2018 and continue its rise.
- Copy investment portfolios of top Netflix traders
- Trade stocks commission-free
- Practice with a free demo account
- No overnight fees
- Risk management tools
eToro is one of today's most trusted and leading platforms for trading Netflix stocks (read our updated review).
It's an online brokerage company that started operation in 2006 and pioneered social trading using a highly-advanced trading platform trusted and used by over 10 million traders.
Here is a handy guide on how to use eToro.
How can I start using eToro?
Using eToro has proven to be a useful tool even for traders who are just starting out. eToro is a very straightforward app.
You just need to sign up by choosing a username and set up security functions via your phone number. After completing your profile, you just need to make a deposit and familiarize yourself with the platform.
Learn, succeed and share your knowledge...
Because eToro’s platform make it easier for any trader to succeed, once you become a seasoned trader, you can also share your knowledge to other budding traders.
Think of it as a Pay-it-Forward system that has afforded eToro to grow its network of traders.
And here’s the best thing: zero commission
This means the money you earn from your stocks are the money you earn; no ifs and buts. Rest-assured, eToro will never charge you with deductions on markups, management fees or any added expenses.
This is a major benefit of using eToro because majority of other brokerages imposes hefty fees to its users.
eToro also uses an innovative system called CopyPortfolios which comes in two types:
- Top Trader Portfolios - this is where professional and highly experienced traders are bundled together to which you, as a newbie trader, can learn a lot based on their collective knowledge and experience in stock trading. It’s like having a bunch of mentors guiding you along the exciting and delicate world of stock trading.
- Market Portfolios - this focuses sector trading. It means you can not only invest and trade on one financial instrument, but you can also do so with other key competitors in the market. For example, you are trading Netflix stocks, with Market Portfolios you can also look at and invest on Netflix’s competitors such as Amazon, Apple TV, Disney, etc. This is very useful if you are looking to spread out your stocks investments.
And another thing that make it perform smoothly:
eToro is a regulated broker that fully adheres to strict guidelines of different regulatory bodies including the following:
- CySEC – Cyprus Securities and Exchange Commission
- FCA – Financial Conduct Authority
- ASIC – Australian Securities and Investments Commission
- Competitive spreads for Netflix
- Trading with as little as $100
- Fast and reliable order execution
- Risk management tools
- Fully regulated by the FCA, CySEC and ASIC
The emergence of CFD trading made stock investing a lot easier and accessible to many business-minded individuals.
That said, it is important to choose a well-regarded brand when choosing to enter the world of CFD trading.
Plus500 is one such brand. To learn more abou Plus500, you can read our comprehensive review here.
CFD transactions also allows stock traders to speculate on Netflix’s price movement. Whether Netflix’s stocks rose or fall, you are guaranteed access to many valuable information.
By using the Plus500 proprietary platform, you can trade on Netflix shares and even invest on other company stocks with top-performing stocks like Facebook ( ), Paypal Holdings ( ), T-Mobile Sys ( ), Alphabet (Google) ( ), and more by simply opening the Trade or Sell positions.
Here’s another interesting feature: sector indices
Via these unique indices, you will be able to invest on a basket of stocks that are grouped by a specific market sector and capitalize on popular trading trends in the stock market with just a single instrument.
Aside from investing solely in Netflix stocks, you can also explore trading opportunities via the NYSE FANG+ index futures CFD which is an an index of 10 next-generation tech companies including Netflix, Facebook, Twitter, Baidu, NVIDIA and more.
The best thing about it…
Plus500 is fully licensed by the following financial regulators:
- Plus500CY Ltd authorized & regulated by CySEC (#250/14).
- Plus500UK Ltd authorised & regulated by the FCA (#509909).
- Plus500SG Pte Ltd, licensed by the MAS (#CMS100648-1) and IE Singapore (#PLUS/CBL/2018).
- Plus500AU Pty Ltd (ACN 153301681), licensed by: ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546. You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.
Netflix Stock Performance
Just before 2019 ended, several financial publications lauded Netflix for being the "best-performing stock of the decade", by yielding more than 4,000% return.
And did you know?
Netflix is expected to widen its audience after partnering with six Japanese creators for a planned series of original Japanese anime. On April 2020, Netflix and Chernin Entertainment agreed on a multi-year first look deal to make original films.
It gets better...
Following a record-breaking 1st Quarter of 2020 that saw Netflix gaining an additional 15.8 million new subscribers, the forecast for this streaming giant all points to more positive development.
Netflix is one of the very few companies that remained thriving even during the Covid-19 pandemic.
And another thing...
Netflix is being helped greatly by the company's sound decision of investing long-term on key international regions. This made it possible for Netflix to widen its lead in the streaming wars against its competitors.
Financial analysts believe that Netflix will continue to benefit from the international market.
Netflix Stock Forecast
Below is a quick yet detailed rundown of our expert projections for Netflix’s stocks in the coming couple of years, based on current market data, analysis and expectations.
Our forecasts are meant to guide you to make sound decisions based on present-day situation of the company, the global economy, market trends and the stock market. It does not guarantee the future performance of a company’s stock price.
Therefore, actual market outcomes and results may differ from what was forecasted due to numerous factors and circumstances.
2020: Positive Outlook Amidst a Global Pandemic
With more people staying at home because of the global pandemic caused by the Covid-19 coronavirus, Netflix found itself being introduced to a larger audience.
And did you know?
As shelter-in-place were implemented in most parts of the world, Netflix added more than 15 million subscribers, more than doubling its expected numbers, during the first quarter of the year.
Despite the anticipated negative effect of the COVID-19 pandemic in the stock market, Netflix’s stock is among those that managed to grow slightly. Any impact the pandemic is expected to cause was softened a lot by the strong performance of Netflix’s in the stock market.
And as work from home is foreseen to become the “new normal” until next year, more people are expected to become new subscribers of Netflix because more time spent at home means more entertainment needed to offset the stress of work.
Not yet convinced?
Just look at the graph below to see how Netflix has performed in the stock market for a span of 1 year:
Our outlook for Netflix’s stock growth this year to be medium, especially if another breakout quarter is achieved.
2021: Creating More Original Content
Despite the emergence of several competitors, Netflix has fully prepared for this eventuality by stocking up its library of contents.
In 2018, Netflix spent $12 billion dollars producing original movies and series and followed it up with a $15 billion budget for Netflix Originals in 2019.
While the global pandemic slowed down the production of films worldwide, Netflix is expected to ramp up its content creation in 2021.
And because "original content is king", expect Netflix to remain king of the streaming industry.
For these reasons, the outlook for Netflix’s stock growth ranges from medium to high.
How to Trade Netflix Stock?
Open an account with an online broker.
In order for you to trade Netflix stock and other company shares, first you need to open an account with a brokerage which offers a platform for trading.
Signing-up for an account only takes a few minutes to accomplish and after completing this process, you need to make a deposit so you can start investing.
Open your broker's trading platform.
Let's say you have opened an account with a specific brokerage and you have already funded it. The next step to do is to open their platform to start trading.
Look for the Netflix stock (symbol: NFLX).
After opening the platform, search for the Netflix stock by using the search bar and entering either "Netflix" or its stock symbol "NFLX".
Select Trade and set the amount.
Click on "Trade" and specify the amount that you wish to invest. You may also set several specific parameters depending the features that are offered to you by your broker.
Execute the order.
Initiate the trade by executing the order.
Should I trade Netflix stock?
That’s a good question to ask yourself.
We believed Netflix has weathered the storm brought about by the emergence of competitors in the online streaming industry. Based on its strong performance during this decade, we expect Netflix's stocks to do great in the coming years.
So, are you ready to “stream” trading opportunities from Netflix stocks?
If you are convinced that Netflix is here to stay strong for years to come, then we strongly recommend for you to back it up by choosing a trusted and regulated brokerage firm to ensure the safety of your funds and bring you peace of mind–and earnings.
Frequently Asked Questions (FAQ)
How Much is the Netflix Stock?
Here is the current stock market price of ( )
Who Owns the Most Shares of Netflix?
Capital Research and Management Co. currently owns the most Netflix stock at 37,911,773 shares with a total value of $17,251,373,186 as of press time.
How Many Outstanding Shares Does Netflix Have?
Based on the latest statistics, Netflix’s outstanding shares is 441.02 million.
Where Can I Trade Netflix Stock?
There are many online brokerage firms offering Netflix’s stocks for you to choose from. However, there are also online brokers that offer CFD (contracts for difference) platforms–such as the ones we mentioned on this article–where you can speculate and trade on the rising or falling price of Netflix shares.
Best Brokers for Trading Netflix Stocks
Below are the most trusted and regulated brokers that we recommend for you to trade Netflix stock CFDs. Simply click on the Netflix Page button of your chosen broker and we'll take you straight to their stock trading page.
Min Deposit: $200
Regulation: CYSEC, FCA
68% of retail CFD accounts lose money.
Min Deposit: $100
Regulation: FCA, ASIC, CySEC
77% of retail CFD accounts lose money.
Min Deposit: $100
Regulation: CBI, ASIC, FSC, FSA, FSB
Min Deposit: $5
Regulation: IFSC, ASIC, CySEC