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How to buy Netflix shares
This guide looks at a brief history of Netflix, its recent extraordinary rise, the latest news about the company, and the signs you should look out for before investing. Read on to find our latest market analysis as well as a list of where to buy Netflix stock online.
Compare the best Netflix trading platforms
If you have all the information you need and just want to know the best place to buy Netflix shares, check out our list of trusted brokers below. We’ve assessed all the best options and compared them so that making the right choice for your needs is quick and easy.
If you’re not ready to invest yet, keep reading for more information on Netflix.
How to buy Netflix stock, a step-by-step guide
Nowadays, investing in a company is a simple process, even for the most inexperienced investor. The following list explains the steps you need to take to complete your investment.
- Choose a broker. To get involved, you need to use an online brokerage platform. There are many different options to choose from, each with its own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
- Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally, you can expect to have to provide your name, email address, phone number, and some form of photo identification.
- Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in Netflix shares.
- Place an order for NFLX stock. Now navigate to your chosen broker’s stocks section. Here, you’ll be able to search for Netflix’s ticker symbol (NFLX) and see the current price at which the stock is trading. If you’re happy with the price, enter the number of shares you wish to purchase and place your order.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Netflix shares will be listed in your account. Congratulations, you’ve just bought shares in Netflix! Explore the Invezz website for more information on investing in stocks.
What is Netflix? And should I invest?
Netflix is a subscription based streaming service that offers film and television series from its vast library of content. It was formed in 1997, originally running a DVD-rental service by post before becoming one of the most successful ventures of the modern era when it began offering online streaming content.
Netflix famously offered to be acquired by Blockbuster, the rental store, all the way back around the turn of the century. That offer was turned down and Netflix went on to capitalise on first, a surge in homes with DVD players, and then internet speeds and bandwidth reaching the point that made home streaming possible. Blockbuster, meanwhile, has been out of business for a decade.
Netflix stock is now very expensive, trading above $500, which may put it out of reach for some smaller investors, or at least limit you to a handful of shares. That’s a far cry from just a few years ago. Netflix traded below $10 at the end of 2011 and has grown 400% since 2017 alone. Even at its much higher price point, there could still be opportunities for growth spurred by new markets and original content, albeit in a world where there is now far more direct, well-funded competition.
How has the company performed in recent years?
The short answer is extremely well. Although Netflix has significant debt and the costs of producing new, top quality, original content are high, its subscriber numbers are key to the constant growth. As a general rule, investors have liked good new subscriber numbers and reacted less well to the quarters with more disappointing results.
Although the trend is dizzying growth, there have been some short term drops in the NFLX price during the recent rise. They are usually prompted by lower than expected subscriber data combined with the increase in competition in the streaming space. The falls have usually short-lived but it is something to consider when you invest.
Netflix was one of the few companies to have been positioned perfectly to benefit from the pandemic induced lockdowns. It experienced a surge in subscribers, north of 20 million new people signed up during the initial wave, and did not rely on advertising revenue in the same way as traditional broadcasters. NFLX almost hit a high of $550 in the middle of summer, having been at $350 in March before the virus took hold, and took its market capitalisation up above Disney to be the biggest entertainment company.
Is it a good time to buy Netflix shares now?
There is now much more competition in online streaming. Along with Amazon and Disney, almost every traditional broadcaster has launched its own streaming service and many of these are subscription-based as well. Whether consumer demand can cope with so many options remains to be seen, although Netflix has a significant first-mover advantage and is now so well-established that the challenges are much higher for the competition.
There does remain some challenges for Netflix though. It is likely to run into a content gap in the aftermath of the pandemic, as it was unable to film new shows during lockdowns just like everyone else. Its debt level does remain high, and the influx of new subscribers in 2020 might naturally result in fewer people signing up in the immediate future. There is also going to be serious competition from Amazon, Disney and the new HBO Max, as well as Apple TV before even considering the established broadcasters.
Netflix is targeting regional markets and original, local language content as a way of continuing to boost its subscribers. This particularly means India and China, as well as smaller markets around the world. These are going to be the next streaming battlegrounds, with plenty of eyeballs up for grabs, and any investor should look out for news on those. You can find all that latest Netflix news and market analysis below.
Should I invest in Netflix (NFLX) stock after disappointing subscriber adds and guidance?
Netflix stock price soars almost 15% on Q4 beat
Netflix shares continue to trade in a bull market as investors wait for Q4 results
Buying, selling and trading shares for beginners
What to do before buying shares
You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment.
With that in mind, here’s a checklist to run through before investing in Netflix shares.
- Research the company. You should always examine the fundamentals of a company before investing. What is Netflix? How did the company get its start? How did it grow? Is Netflix’s revenue and profit growth picking up? Is the company innovating? The more you know about Netflix, the better positioned you’ll be to make smart investment decisions.
- Make sure you understand the basics of stock investing. Before getting involved in stock market investment, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
- Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
- Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
- Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our thorough broker reviews can help you find the right platform for you.
- Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bearish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. The news section of our website can help you keep on top of movements in the financial markets.
What is the difference between buying, selling, and trading shares?
If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Netflix shares. Here’s a quick run-through of what’s involved in each.
This process involves finding a broker and placing an order for Netflix stock, as outlined in the steps further up this page. Ideally, you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.
When you sell any Netflix shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit.
When you sell is up to you. You might decide to hold shares for long periods of time, hoping to benefit from the company growing steadily throughout. Or, if you see that Netflix’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.
Trading is the same process as buying and selling shares, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.
You can trade Netflix shares through buying and selling shares, or by trading with CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.
Share dealing vs CFD trading
When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.
Here’s a quick summary of the two approaches, and the pros and cons of each.
Share dealing refers to the practice of holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.
When investing your money this way, it is important to do a thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter-term peaks and troughs.
- Can build wealth over time to achieve financial goals
- Don’t need to be very reactive to short-term market movements
- Some stocks will give you an income through regular dividend payments
- Takes a long time to realise any profits
- Your capital is tied up in stocks and cannot be used for other investments
If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.
One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into NFLX shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.
When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.
- Can generate fast profits if you read the market right
- Some platforms allow you to trade with leverage
- Prevents your capital being tied up so you can take advantage of investment opportunities
- Trading with leverage is risky and can lead to big losses
- Doesn’t necessarily generate growth over the long term
Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply take our simple stock trading course and read our basic guide to CFD trading to get you up to speed.
If neither of these options appeal to you, then you can find a variety of other ways to invest in NFLX stock on this page. If, however, you’re ready to get started, simply select one of the brokers in the table above and sign up.
How to choose a broker
With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:
- Range of stocks available. The most important thing is that you can actually use the broker to purchase the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as forex and commodities.
- Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
- Regulation. You should only use regulated brokers to make investments. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
- Payment methods available. You might want to use a specific payment method, such as PayPal. Not all brokers accept every payment method, but by using our comparisons, you can search for the brokers that support the option you’re looking for.
- Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
- Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.
Latest Netflix news
Netflix beats on new subscribers by more than half a million
Netflix stock price forecast ahead of earnings amid $900 million ‘Squid Game’ windfall
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Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >