Buy Netflix stock now without any fees

Last updated: 17.05.2021
Jonas Krauß
Author:
Jonas Krauß
Adviser
CFD & Trading
Experience
10 years

Welcome to our guide that shows you why you should buy Netflix stock. The streaming giant has become a real favourite with investors recently, so we’ll give you an easy way to see how to buy Netflix stock.

Netflix is currently leading the streaming market, and many people have made a smart investment in buying NFLX stocks. Our guide explains how CFD trading is the way forward when investing in Netflix, and we’ll reveal why this streaming company is more than just a short-term venture. So keep reading to see why you should buy Netflix stock now.

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  • Netflix stock price history
  • Our Netflix prediction
  • Consider these factors
  • How to buy Netflix stock
  • Safety first
  • Short-term Netflix investments
  • Long-term outlook
  • Other investment opportunities
  • Conclusion

Netflix stock price history

Netflix is a Californian media streaming and content production company that has been in existence since 1997. In the past couple of decades, Netflix has grown to become a true multinational media company that posted an operating income of $1.2 billion in 2020.

Apart from a few stand-out countries like China, Syria and North Korea, Netflix has successfully exported its on-demand streaming platform across the whole world. Alongside over 73 million subscribers in the US, there are thought to be over 203 million Netflix subscribers worldwide.

It’s easy to forget that Netflix’s original business model was the fairly archaic method of sending out DVDs by post. But with advances in broadband technology, Netflix became a pioneer in on-demand streaming. While the brand has witnessed plenty of competition from the likes of Amazon Prime and Disney+, Netflix has recently become the largest entertainment and media brand by market capitalisation.

Much of this has been down to some shrewd business moves that have seen Netflix become a key content producer of its own movies and TV shows like House of Cards. As a result, Netflix has grown to become an all-round media empire that is no longer primarily dependent on the content produced by old-fashioned Hollywood movie and TV studios. All of which has meant that Netflix has become one of the most consistently in-demand tech brands on the stock market.

Netflix actually had its first IPO way back in 2002. This saw the brand offering its shares at the paltry amount of just $15. Much has changed since then and at the time of writing this guide, Netflix stocks were valued at an impressive $518.43. But it’s important to note that Netflix has been subject to some fairly volatile market highs and lows. So here are some key things to look out for before you buy your Netflix stock.

Our Netflix prediction

Past performance: You will definitely need to know your Netflix stock price history. Companies like Netflix will keep their investors updated with their performance through a series of yearly and quarterly financial reports. These may contain a fairly forbidding amount of statistics, but the reports can be very helpful in helping you see whether such brands are continuing to experience solid growth rates. By analysing these reports, you’ll also be able to see whether the company is investing in new content so as to ensure its long-term profitability.

PE ratio: This is a ratio that describes the value of a company’s stock price compared to the company’s earnings per share. In comparison to some other tech brands, Netflix has historically had a fairly high P/E ratio. For example, at the time of writing this guide, Netflix’s P/E ratio was 72.36 compared to 28.02 for Facebook This means that you would have to wait longer to get a return on your investment from Netflix. But as Netflix is famous for pumping its revenues into extra content, such a strategy could prove to be beneficial for your long-term gains.

Consider these factors

There’s much more to buying Netflix stock than liking the brand’s movies and TV shows. You’ll need to spend plenty of time considering the following factors before you invest in the streaming giant.

Stocks or CFDs? You might think that you’d want to buy a stock outright, but we have found that CFDs tend to offer a faster and more flexible way to invest in the fortunes of brands like Netflix. This is because when you buy a CFD you don’t actually have to go through the ordeal of actually buying a Netflix stock. Instead, you’ll make a profit when the value of Netflix stocks rise, and make a loss when the stock value falls. All of which make for some stress-free trading.

Short or long term investments? It’s a good idea to think about what you want out of your online trading. After all, many people have got burned by thinking that they can quickly buy or sell Netflix stocks on the short-term. Such an approach will require plenty of skill in analysing the market data to know the key points at which to enter and exit your trades.

Can you afford it? The price of Netflix stocks has been above $500 for a while now, and it therefore might be out of the range of many small-time investors. Plus it’s worth thinking about how commission fees and costs for trading could eat into whatever returns you make. So be sure to only use those brokers who can give you free stock trading for a great way to get around this issue.

How to buy Netflix stock

It’s easy to buy Netflix stocks. Just follow this step-by-step guide and you’ll be investing in the fortunes of this streaming company in next to no time.

Create an account at a broker site: It only takes a couple of minutes to create a trading account with an online broker. Expect to have to provide some personal information like your name, email address and date of birth. You will also be required to enter in your banking information and there will normally be some kind of verification procedure to safeguard your personal data.

Fund your trades: You’ll obviously have to make a deposit at a broker site before you start trading. It’s easy enough to do this with the likes of a Visa or MasterCard debit or credit card. Doing so will mean that the funds quickly end up in your account so that you can start trading.

Locate your stocks: Most broker sites are set up in a similar way so that you don’t have to waste time in finding the best trading options. Expect to see Netflix stocks identified as NFLX. You will also be given plenty of detailed information about these stocks. This should include facts regarding things like 24-hour high, 24-hour low, overall volatility and so on.

Buy your stocks: Once you’ve carefully analysed the current Netflix stock price, you’ll finally be in the position to know whether to buy the stocks. If so, you will just need to enter the quantity, submit your request and the Netflix stock should be added to your portfolio in a matter of seconds.

Safety first

It’s important to note that the value of Netflix stocks can fall as well as rise. In the year preceding writing this guide, we saw NFLX stocks sinking to as low as $361.76 despite having reached stunning highs in excess of $530 just a handful of months later.

This is yet another reminder of how smart it can be to invest cautiously in volatile stocks like Netflix. Be sure to use a demo account if your broker features one so that you can see how Netflix stocks behave without risking your own cash.

Above all, remember that investing in the stock market is inherently risky, so only invest money that you don’t mind losing. Plus don’t forget to only use online brokers who are licensed and regulated by an appropriate financial services authority. If you ensure that you are buying or trading stocks within a safe and secure environment, you’re that much better off. As such, we always recommend you use the most trusted online broker.

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Short-term Netflix investments

Timing is everything when it comes to investing in a tech company like Netflix. For example, in the past 24 hours we have seen the value of a NFLX stock rise by nearly $10. As a result, you’ll want to brace yourself for any changes in market forces that could affect the performance of your stocks.

Be aware of how some of Netflix’s key rivals like Disney+ and Amazon Prime are performing, and try and anticipate any major financial reports that could give you a clue into the financial health of Netflix.

It’s also a good idea to see what deals Netflix is doing on the international scene. After all, the announcement of a key partnership between Netflix and Sky TV in 2018 saw the streaming company’s share price skyrocket past all expectations.

Long-term outlook

Netflix is one of the best-performing stocks of the past decade, even outdoing the likes of Amazon and Google. While Netflix had 12 million subscribers but no content in 2010, the streaming giant has revolutionised what we have come to expect from media companies by becoming a global entity with its own production studios everywhere from the US to the UK and Spain.

All of which has marked Netflix’s smart moves to try and diversify its revenues so as to stay in control of its income. Such an approach may have hit the short-term P/E ratio of Netflix, but it’s becoming increasingly evident that such an approach was necessary so as to come out from under the thumb of Hollywood studios.

Above all, Netflix has shown a willingness and innovation to predict what the consumer base wants that few other media companies are able to compete with. The streaming giant famously put the final nail in the coffin of Blockbuster and it looks like doing the same with many iconic movie and TV studios. All of which should make your Netflix stock prediction pretty rosy.

Other investment opportunities

If you’re investing in a relatively volatile stock like Netflix, it can be wise to balance your investment portfolio with a more stable asset. Doing so would mean that even a sudden dip in the value of Netflix stock shouldn’t be enough to cause you financial harm. Many people will invest in commodities like gold as its value doesn’t fluctuate too much.

Beyond this, there are plenty more commodities like oil that represent a popular investment option. Similarly, many people first start in online trading by buying and selling forex currencies like USD, EUR, JPY, CAD, GBP and so on.

You’ll probably be aware that more and more people are starting to speculate on the rapid growth in value of cryptocurrencies like Bitcoin. Although many have criticised Bitcoin as being little more than a speculative bubble, the statistics have shown that the crypto has made rapid gains over the past ten years.

It’s worth noting that there are plenty more tech stocks to invest in besides Netflix. Lots of people made some impressive returns when they opted to buy Facebook stock just after the brand’s IPO. Plus similar levels of profit have been achieved by those smart enough to buy early in other tech giants like Apple, Alphabet, Amazon and Microsoft.

Conclusion

By now you should have all you need to know about whether or not you should buy Netflix stock. We’ve revealed that it’s easy to invest in the streaming giant through the simple CFD model. Plus you’ll know what aspects of the market to look at so that you can execute a perfectly-timed Netflix stock trade.

Like most tech stocks, Netflix has been subject to its own fair share of market volatility. But we’ve found that the brand has been shrewd enough in producing its own content to become a key global player in the realm of online streaming. So as long as you play it safe with your investments and do your research, there’s no reason why you can’t benefit from the Netflix revolution.

Buy Netflix Stock FAQ

It’s always good to have a look at a company’s price to earnings ratio as this will reveal whether the stock is undervalued or overvalued. As a result, we’d recommend looking at the PE ratio regardless of whether you want to buy Tesla stock or buy Netflix stock. So be sure to read our guide that explains how a price to earnings ratio works and how you can use it to see if Netflix stock is too expensive.

It depends on whether you are looking to make a short or long-term investment. Plus you’ll need to factor in how much you can afford to spend on the stock market. Read our guide that can outline the main factors that could make your decision to buy Netflix stock a smarter decision than one to buy Google stock. Perfect advice for surviving the volatility of investing in ‘big tech’ companies.

It’s fairly natural for all stocks on the stock market to experience their ups and downs. There could be a number of factors for why a stock in a ‘big tech’ company like Netflix could be dropping. Take a look at our guide that provides you with the perfect kind of stock market analysis to see the reason for a price drop along with clues about when you might want to buy Netflix stock again.

Timing is everything when it comes to online trading. This is especially true when it comes to dealing with relatively volatile assets like technology stocks. So make sure that you read our guide that will tell you the perfect time to buy Netflix stock. If you’ve left it too late, then we also have guides that can let you know whether it might be a smarter move to buy Amazon stock instead. 

Like most technology stocks, the Netflix stock price is fairly volatile. This means that its value today could be drastically different to that of yesterday. Such considerations are essential for anybody wishing to invest in Netflix or even buy Apple stock. So make sure that you read our guide that will let you know how to analyse the Netflix stock price to make a smart investment.

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