Netflix began by mostly providing mail-order DVD video services, but as streaming became more prevalent, it began to increase in popularity online.
Over the past decade many investors have earned impressive returns after buying shares of Netflix stock. Our guide will show you how to open a brokerage account and start investing in Netflix stock.
Quick Netflix History
Netflix is one of the most popular streaming services. Netflix subscribers have access to a large library of movies and shows to watch online. Their stock price has risen steadily year after year due to subscriber growth. Netflix is a Motion Picture Association (MPA) affiliate that produces and distributes entertainment from all over the world. In 2010, Netflix went global, with streaming accessible in other countries such as Canada.
Netflix also has a selection of “Netflix Original” content available through its streaming catalog. In 2016, Netflix reportedly released over 120 original series and films. Netflix purchased ABQ Studios, an Albuquerque, New Mexico-based film and television production complex in October 2018. Netflix even added 16 million additional members during the global COVID-19 epidemic in 2020.
The Good and the Bad of Netflix Stock
There are many benefits you may have with owning stocks or shares in a company. Here are some of the pros and cons of being a Netflix shareholder.
Pros of Owning Netflix Stock
- Netflix keeps adding original content to its catalog, which helps retain members while keeping expenses as low as possible.
- Netflix has over 203 million paying subscribers globally, with 73 million in the United States.
Cons of Owning Netflix Stock
- Netflix has $16 billion in long-term debt as of December 31, 2020, due to the company spending excess amounts of money on Original contentment to finance its expansion.
- Companies such as Hulu and Amazon have been growing in popularity in recent years and could start taking away subscribers from Netflix.
Outlook for Netflix Stock
Netflix is a huge streaming service that continues to gain popularity every year. Netflix continues to release blockbuster exclusive shows, and analyst ratings as well as earnings continue to show promise. Throughout the years Netflix stock has fluctuated but overall the share price has seen steady growth. In order to maintain its growth rate, Netflix intends to continue to expand its streaming service into other regions.
Steps to Buy Netflix Stock
To purchase Netflix stock, you must first open a brokerage account, then a trading account, deposit, and then begin purchasing shares.
Step 1: Select a Brokerage
You must first locate a brokerage in order to purchase Netflix stock. Netflix stock is accessible to buy through practically any brokerage firm.
Step 2: Open the Trading Account
After you’ve selected a brokerage you’ll need to open an account with them. This account is only available through the brokerage online, and it helps you to keep track of your Netflix shares.
Step 3: Search for the Netflix Ticker Symbol (NFLX)
A ticker symbol is an abbreviation that is used to distinguish publicly trading shares in a company. Netflix intends to trade under the symbol NFLX.
Step 4: Purchase Netflix Stock
In order to purchase Netflix stock you would have to then :
- Choose an action type
- Enter the number of shares you wish to buy (or sell). Decide how many NFLX shares you want to buy depending on the current stock price
- Simply press the buy (or sell) button.
Is Netflix Stock a Good Buy?
Netflix is still a relatively safe investment opportunity. Netflix does not seem to be in danger of being crushed by other streaming services. In the past quarter Netflix did have a drop in subscriber growth and investors should be somewhat worried about the possibility of competition growing in the future even though Netflix is still on top.
Despite all of this Netflix has consistently shown consumer loyalty and superior financial success in terms of revenue growth. Opportunistic investors should consider investing in Netflix because shareholders in recent years have consistently been rewarded. If you have any questions feel free to turn to a financial advisor for investment advice.