Summary: Despite the recent password-sharing crackdown, Netflix still reigns supreme as the go-to video-on-demand and streaming service, with its stock projected to grow exponentially, according to researchers such as MoffettNathanson. Consequently, many investors are looking to invest in the platform and capitalize on its momentum. To buy Netflix stock, investors can register an account at a reliable broker such as eToro and Interactive Brokers.
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About Netflix
Netflix (NASDAQ: NFLX) is a subscription-based streaming platform that allows users to watch TV shows, movies, documentaries, and other kinds of media entertainment. The platform is available on all sorts of devices, including computers, phones, televisions, and gaming consoles.
As of Q4 2023, Netflix has more than 247 million registered users, generating a quarterly revenue of around $8.4 billion, according to Statista. The staggering numbers are largely a result of the company’s global expansion, although the 2019 COVID pandemic contributed greatly.
How to buy Netflix stock? Step-by-step process
Netflix has been a public company since 2002, trading under the ticker NFLX. Since we’re talking about a public company with a more-than-solid global presence, investing in its stock should not pose a problem.
Step 1: Choose a broker
To buy Netflix stock, you need to register an account with a solid online exchange. Such platforms are numerous these days, each catering to different kinds of investors (e.g., day traders, passive investors, etc.).
To choose a platform that suits your needs and goals, consider the following factors:
- Broker reputation: Only brokers with a good track record and lots of positive user reviews should be taken into consideration;
- Fees: If possible, look for platforms that offer commission-free stock trading;
- Security: Only consider platforms regulated by bodies such as Financial Conduct Authority (FCA) and Financial Industry Regulatory Authority (FINRA);
- Customer support: Helpful customer support will be a godsend whenever you’re feeling confused, either by the market or the platform;
- Trading tools: If you are a newbie, you should stick to beginner-friendly platforms with accessible stock trading features. Once you’ve gained some experience, you can start exploring additional trading tools, so be sure the platform offers them as an option;
- Market data accessibility: Always choose a platform that provides users with easy access to market data. After all, researching the market is at the heart of every successful trade;
- Fractional stock trading: Fractional stock trading features allow investors to purchase a portion of a share, which is great for those favoring dollar-cost averaging strategies.
Our recommended brokers are:
1. eToro
- Commission-free stock trading;
- 2,000+ stocks from 17 different exchanges;
- Fractional shares;
- Ready-made investment portfolios;
- No account minimums;
- Social trading.
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
2. Interactive Brokers (IBKR)
- Commission-free stock trading;
- Global stock-trading on 90+ market centers;
- Fractional shares;
- No minimum deposits;
- Additional income on fully paid shares;
- Lowest financing rates for margin accounts.
Best Platform for Worldwide Stock Trading & Investing
-
Highly trusted multi-asset broker with clients in over 200 countries
-
Trade on 150 markets globally from a single platform (stocks, ETFs, futures, currencies, crypto & more)
-
Low commissions starting at $0 with no platform fees or account minimums
-
Easily fund your account and trade assets in 26 currencies
-
IBKR pays up to 4.58% interest on cash balances of $10k or more
Step 2: Fund your account
When you choose a broker and make an account, you can start funding it. Not all brokers offer the same array of available payment methods, so be sure to check they’ll allow you to transfer funds the way you want to.
Note
These days, you can typically link your bank accounts directly to the broker, or you can use a credit or prepaid card. Sometimes, however, you will have to use third-party payment services like PayPal (PYPL).
Note
Step 3: Research Netflix and its performance
Before investing in Netflix, you should try to gather as much information about its performance in the market as possible if you wish for your investment to be fruitful. You can look into:
- Its stock prices: Since you’re buying stocks, their performance is going to be the most determining factor. You can check current prices and analyze market conditions by looking at factors that might influence them;
- Financial reports: Netflix is a public company, so it’s obliged to share regular updates and financial reports with the investing public. So, review the company’s annual and quarterly reports, compare revenue sources, check the company’s debt levels, etc.
- User and investor sentiment: The entertainment industry can be highly dynamic, with new platforms rising and falling quite rapidly. To stay ahead of the game and ensure your investments are fruitful, always keep an eye on public and investor sentiment. What do the users say about the platform? What are the projected growth rates? Note, though, that sometimes, user opinions do not exactly match the performance of the company. For example, the general public assumed the recent password-sharing fiasco would ruin the company, but we’re seeing public figures such as Jim Cramer call Netflix stocks the greatest investment of all time as the company keeps seeing increased revenue. In other words, due diligence is always advised.
Note
Step 4: Decide how much you want to invest
When all the account preparations are made, you can start thinking about the actual sum you’d like to invest.
The exact amount will ultimately depend on two factors: the stock price itself and the number of shares you want to buy. However, before investing at all, you’ll have to make sure you are in the position to do so. That is, you’ll have to ensure you can afford to invest by paying off any debts, creating a safety fund, etc.
Investing is always risky, so there is always a chance the market is going to go against you no matter what you do. Therefore, never invest what you cannot afford to lose, and try to familiarize yourself with some common investment mistakes before placing any trades.
Common mistakes to avoid when investing
New investors tend to make a plethora of mistakes, some of the most typical ones being:
- Not researching the company;
- Having no clear strategy and goal;
- Failing to diversify (i.e., invest in multiple assets);
- Letting your emotions dictate your decisions.
Step 5: Place your order
Finally, once you’ve decided on your investing amount, you can place your order. When buying stocks, you’ll have a few options to choose from in terms of order type:
- Market order: Buy the stock at the current market price if it is available;
- Limit order: Buy the stock when it reaches a pre-specified price or goes below it;
- Options contract: This order gives the investor the option to buy a stock at a fixed price for a determined period of time. Then, they can make calls as to whether the stock price is going to rise or fall and make a profit based on their predictions.
Step 6: Monitor your investment
The investment process does not end as soon as you’ve got the stock in your portfolio. Indeed, you must continue to monitor your investment and its performance in the market.
Most importantly, you should keep track of Netflix’s activities. Simply keep an eye on press releases, news, and announcements that might be relevant to the company’s stock prices. Also, be sure to familiarize yourself with its revenue stream, management team, and larger investors.
Moreover, you can try to analyze general market prospects and trends that might threaten to shake Netflix’s position as the dominant streaming platform. For example, you can monitor the performance of some of the related stocks, such as Amazon (AMZN) and Disney (DIS), and adjust your strategy accordingly.
Note
Netflix stock price
Should you buy Netlix stock?
When deciding whether to invest in a company, it is always smart to check its fundamentals and conduct some technical analysis to catch some profitable trading opportunities. Further, you can analyze price trends on stock charts to make better-informed decisions in regard to whether you should hold onto your stocks or sell them.
Disclaimer: TradingView does not recommend trading financial instruments based exclusively on the advice of the Technical Rating indicator. These recommendations cannot predict future movements and are meant as assistance for spotting potentially favorable buy/sell conditions if this is consistent with their strategy.
Pros and cons of investing in Netflix stock
Pros
- Large user base: With more than 238 million registered users, Netflix is still the video-on-demand king and an obvious choice for investors looking to gain exposure to the streaming industry;
- International presence: Netflix is the most popular streaming service not only domestically, that is, in the US, but globally as well;
- The subscription model makes income predictions easier: The more subscribers, the more revenue the platform generates. This simple metric makes predictions rather accessible even to new investors. Note, however, that user numbers are not the sole factor that dictates revenue.
Cons
- Competition: Netflix may be the go-to streaming platform for most viewers now, but that does not mean it is going to remain in that spot. The market is competitive, and other streaming services such as Apple TV, Amazon Prime, and Disney+ could, in theory, always dethrone it;
- Strikes: At the time of writing (Q2 2023), Hollywood is witnessing its first strike in more than half a century, with a large number of employees, mostly writers, expressing their dissatisfaction with the industry. This could affect stock prices negatively;
- Content cost: Some Netflix content costs the company billions of dollars every year. This presents a risk for investors, as it makes predicting future costs difficult.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Netflix stock
Is Netflix a public company?
Yes, Netflix is a publicly traded company.
What is the Netflix ticker symbol?
The Netflix ticker symbol is NFLX.
Where to buy Netflix stock?
You can buy Netflix stock on online exchange platforms such as eToro and Interactive Brokers.
Is Netflix a good stock to buy?
Whether you should invest in Netflix will depend on a number of factors, such as your portfolio composition, risk tolerance, financial goals, market experience, etc.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
