Joy Wallet is advertiser-supported: we may earn compensation from the products and offers mentioned in this article. However, any expressed opinions are our own and aren't influenced by compensation. To read our full disclosure, click here.
Unless you have been living under the rock all your life, you must have heard of Netflix. The streaming service provider has become a part of our lives and dominates most of our free time. The company launched it all. It gave us the best entertainment, interesting shows, and access to a whole world of movies. The business was mailing DVDs at a time and then at the speed of light, it replaced the traditional cable. Households have started streaming everything and it all began with Netflix. It has the first-mover advantage and the company has grown by leaps and bounds.
As one of the top streaming giants, Netflix is giving competition to Disney and HBO. Netflix spent heavily to establish a market and made gutsy moves to prove its leadership. Netflix stock has hit the highest price of $593 recently and has been up 421% over the last 5 years. It is currently exchanging hands as of June 17 at $500.
Want to get your hands on NFLX stock? Let's go through the process.
Step 1: Finding a broker that offers Netflix stock
The first step for buying Netflix stock is to look for an online broker that offers the stock and this will not take long. Let us take a look at four investment platforms that allow you to buy Netflix stock instantly.
If you are a beginner, Stash is the right platform for you. It allows you to start building a stock portfolio with ease. It will not take more than 10 minutes to create an account and you will be able to buy stocks, ETFs, and mutual funds. Stash offers multiple fee options to choose from. You can take a pick based on your investing needs. For $1, you get the basics including a $1,000 life insurance policy and a debit card. For $3, you get retirement accounts and for $9, you get access to everything which includes monthly market insight reports and custodial accounts.
You can also purchase fractional shares with Stash, so if you do not have the funds to buy a stock, you can buy a part of it. It is also possible to set up a direct deposit to the Stash account.
M1 Finance is the perfect option for investors who are in the stock market with a buy-and-hold strategy. It allows you to customize the portfolio and create an allocation of mutual funds, stocks, and ETFs based on your investment strategy. It is not for someone who enjoys buying and selling. It is also not for the newbies. The platform does not offer much support to help you make decisions. You can have individual, retirement accounts, joint taxable accounts, and trusts. You can get the premium version for $125 annually and get a custodial account. There is a minimum of $100 required for taxable accounts and $500 for retirement accounts. The purchases are commission-free and it offers fractional shares.
Robinhood is another user-friendly platform. It is free to sign up and you can get a share of stock when you complete the application. You can enjoy premium features for $5 a month which includes access to Morningstar research that can help make wise investment decisions. You can purchase fractional shares on Robinhood and the stock purchases are commission-free. Robinhood also allows you to engage in pre-market trading.
Netflix Inc. is an American production and over-the-top content company with its headquarters in California. It was founded in 1997 by Marc Randolph and Reed Hastings in California. The primary business of the company is subscription-based streaming which offers a library of television series and films as well as content produced in-house.
Netflix has made strong moves with time and in April 2021, it had 208 million subscribers. It is available across the world except for China, North Korea, Crimea, and Syria. The initial business of the company was DVD sales and rental by mail but it was abandoned within a year of the company’s founding. It expanded the business in 2007 with the introduction of streaming media. That was a time when streaming media was fairly new and people were paying for the traditional cable television. Netflix started expanding internationally in 2010 with streaming services in Canada, followed by Latin America and the Caribbean. It entered the production industry in 2013 with House of Cards. In 2020, Netflix became the largest media company by market capitalization and in 2021, it was ranked as the 8th most trusted brand in the world.
Netflix Inc. is a technology company that is listed under NASDAQ with the ticker NFLX.
Netflix price history
You may have missed a chance to invest in the Netflix IPO. But you can grab the opportunity now. The company has grown over the years and is making news for the outstanding original content. If you had invested $1,000 in the IPO in 2002 for $15 a share, you would have received 66 shares. The company split stock twice, in 2004 and 2015. The 2004 stock split was 2-for-1 and the 2015 stock split was 7-for-1. After the stock split, you would have 933 shares worth $4,59,036 today. That is a massive gain in 17 years.
Netflix dividend information
Netflix does not pay any dividends and it invests the profit back into the company. The media giant spends a vast amount of capital on the content to grow.
Best features of Netflix Stock
Impressive new subscriber growth. In the last few years, Netflix has focused on growing its subscriber base globally. The company has invested heavily in local language content production across the globe and the pandemic has worked in favor of Netflix. The company saw a surge in subscribers with time. In 2014, the company added 8.3 million subscribers and in 2015, the number went to 16 million. In the next five years, Netflix went from 18 million to 22 million and then 28 million. It had 27 million subscribers last year. In the first quarter of 2021, it had 207.64 million subscribers across the world. Canada and the U.S.A account for 35.8% of the total subscriber base. Due to the lockdown and movement restrictions, there was a significant drive in the business for Netflix. As people could not step out to watch movies or engage in any other form of entertainment like live sports, the only option was to enjoy Netflix from home. This led to a surge in subscriber growth.
Cord-cutting trend. Even before the pandemic entered our lives, people were quitting traditional TV channels and looking for better entertainment options. Netflix had already started to benefit from the trend of cord-cutting. Pandemic cord-cutting led to many households giving up on traditional cable TV and opting for streaming services. It is expected that the trend will continue through 2021. With convenient ways of consuming content, users are moving towards the streaming platform. Many households have subscriptions with four to five platforms. This means they are not quitting Netflix for Apple, Amazon, or Disney, but they are adopting new services while sticking with Netflix.
Strong fundamentals. Investors should always look at the fundamentals of the company before purchasing the stock. Netflix has strong fundamentals and in the latest quarterly report, the company reported adding 3.98 million streaming subscribers in three months. It plans to add 1 million in the coming quarter. The earnings of the company jumped 139% year over year while the sales increased by 24%. Netflix aims to turn positive in 2022 and could then be in a position to return cash to investors through dividends or share repurchases.
The content sets Netflix apart. There is no dearth of streaming platforms today but what is it that sets Netflix apart? It is their content. Users will only be drawn to a platform if they enjoy the content and since it started the regional content push, Netflix has had many hit shows. It includes "The Queen's Gambit”, "Money Heist," “Bridgerton," and "Emily in Paris.” The content is a major draw for the subscribers. Even after raising the prices for standard and premium tiers of subscription service, the subscribers are growing. The company racked up nominations and wins for various television and movie awards for the original programs. It entered the Oscars with 36 nominations, which is far more than any other studio and it won 7. It won the most awards of any studio at the 93rd Academy Awards and the 78th Golden Globe Awards.
New content will lead to new subscriptions. Due to the pandemic, the company had to slow down on production and there was a pause button for new shows. This led to a slowdown in adding subscribers, but as the economy opens up and we return to normalcy, Netflix will continue with the production of new content and it will lead to new subscriptions. Although the pandemic did not do much damage to Netflix, its future looks brighter than ever.
An alternative source of income. Besides the streaming services, the company makes money through ads and will soon earn from selling franchise products. The company plans to sell toys, T-shirts, and concert tickets to your favorite shows and make money through it. The online store will get more people to subscribe to Netflix. Besides consumer products, it is also dabbling in podcasts and video games. Even if the contribution of the online store is minimal, it can add to the revenue and attract users to their streaming service.
Step 3: Open an account & buy Netflix shares
With online brokerage firms, you can buy Netflix stock easily and conveniently. Here’s a complete guide for investing in shares of Netflix using Stash.
Open the website and click on Get Started, now you will have to provide your email address and password and click on create an account. Now provide your details including your name, birthdate, address, the purpose of investment, phone number, citizenship status, and pre-tax household income.
You now need to choose a plan out of the three plans- Beginner, Growth, and Stash+.
Once you have chosen a plan, you can decide on the stock you want to purchase and the number of shares you want. Simply use the ticker symbol to place the order. Now you need to choose between market or limit order. When you choose a market order, the transaction will be carried out at the prevailing market price of the stock and when you choose a limit order, you will have to set a limit price and the transaction will only be performed when the stock hits the limit price.
How much were Netflix shares when the company first went public?
Netflix's stock price was $15 when it first went public in 2002 through an IPO.
How much does it cost to buy Netflix shares today?
As of closing on June 17, 2021, Netflix shares cost $500.
Does Netflix pay dividends?
Netflix does not pay any dividends.
What is the minimum number of Netflix shares that I can buy?
You can purchase one share or a fractional share if you use the right brokerage.
The bottom line
If you are looking for a stock that has the potential to offer 5x or 10x gains, you have to look nowhere else. Netflix can scale and change the way people consume content. Using online brokerage accounts like Stash, Wealthfront, or M1 finance, you can start your investment journey. No matter the number of shares you choose to buy, remember the market is volatile and you will see some highs and lows. Volatility is a part of the stock market and you have to keep your risk appetite in mind when investing.
It takes just a few minutes to see how much CarInsurance.net could put back in your pocket. And the best part? Because we’re driving less, some insurers are slashing prices this month.
Disclaimer: Joy Wallet is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. Joy Wallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Featured estimates are based on past market performance, and past performance is not a guarantee of future performance.
Our site doesn’t feature every company or financial product available on the market. We are compensated by our partners, which may influence which products we review and write about (and where those products appear on our site), but it in no way affects our recommendations or advice. Our editorials are grounded on independent research. All figures are provided by the cited source or the service provider. Our partners cannot pay us to guarantee favorable reviews of their products or services.