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If you’re reading this blog, there’s a 50% chance that you have been a Netflix subscriber. There’s an even higher chance that you’ve used someone else’s Netflix account!
Netflix has come a long way from being a DVD mail-in delivery company to an online streaming service giant. But Netflix didn’t just stop at being the #1 streaming platform in the world. The NFLX stock outperformed every stock on the S&P 500 from 2010 to 2019!
Netflix is a user-centric organization driven by a business model that focuses on improving the streaming experience for its users. This is evident from Netflix’s stellar user retention rate of 60% after 2 years of subscription and 55% after 3 years.
It is also one of the few streaming services that don’t bother you with constant ADs. Netflix also invests approximately $150 million on improving user recommendations. The performance of the NFLX stock is not surprising when you think about all these factors.
But should you buy shares of the NFLX stock? Will it benefit your portfolio? Let’s answer these questions by looking at the NFLX stock information.
1. Stock Name: Netflix, Inc. (NFLX)
2. Share Price: $546.54*
3. Market Cap: $242.06 Billion
4. Beta: 0.79
5. P/E Ratio: 89.89
6. 52 Week Low: $393.60
7. 52 Week High: $593.29
Fun Fact: Netflix was originally called KIBBLE.
Note: Historical performance does not guarantee future success. Please consult a Cube Wealth Coach or enroll for our US Advisory Service, before investing your hard-earned money into any stocks.
Netflix might seem comparatively smaller than other tech brands like Facebook, Apple, Amazon, and others, in terms of market share. But Netflix’s market cap is higher than the GDP of New Zealand, Belarus Kuwait, and several other countries.
1. Consistent subscriber growth.
2. Increase in Q3 2020 revenue $6.4 billion Vs Q3 2019 $5.2 billion.
3. International business expansion and revenue.
4. Historical performance.
5. Highly transparent.
6. Extremely user-centric.
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Fun Fact: If you’re a Tesla motors vehicle owner, you’d be happy to know that you can stream Netflix in your Tesla soon. (Only when parked though!)
1. Stiff competition from Amazon and Disney+.
2. Threat from traditional media outlets like Warner Bros., HBO, and others.
3. Missed subscriber target for Q3.
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Before you buy any international stock, speak to a Cube Wealth Coach to know whether NFLX, AAPL, GOOG, FB, AMZN, TSLA and more can help your portfolio.
NFLX stock offers a solid proposition for investors because of its historical performance, consistency, widely sought after content, user-centric business model, and more.
But at the same time, there are worrying factors like the NFLX stock trading at 60x forward earnings, increasing competition from Amazon, Disney+, Apple TV+, Hulu, and other traditional media outlets. As of 04-01-2021, the NFLX stock is currently trading below its 52 week high.
Historical performance and the pros & cons are not enough to answer this question either. Other factors like your age, risk appetite, investment goals, time frame, and more, can determine whether you should buy NFLX stock.
Download Cube for free to know if you should buy US stocks like NFLX, GOOG, AMZN, TSLA, BABA, AAPL, and others.
Ans. No, you cannot buy Netflix shares directly from the company. Netflix shares are traded on stock exchanges, and you will need to go through a brokerage account to purchase them.
Ans. To invest in Netflix or any other stock, you need to open a brokerage account with a reputable brokerage firm. You can do this online or in-person, depending on the brokerage's options and requirements. You'll need to provide personal information, financial information, and identification documents.
Ans. The amount of money you need to invest in Netflix depends on the current stock price and your investment goals. You can buy as few or as many shares as you can afford, but keep in mind that you'll need to cover brokerage fees and potentially taxes.
Ans. Netflix is traded on the NASDAQ stock exchange under the symbol "NFLX."
Opting to invest in Netflix presents an appealing prospect for those interested in joining the flourishing streaming and entertainment sector. As a prominent distributor of online streaming content, Netflix has witnessed substantial expansion in its subscriber base and market worth. Nonetheless, it's vital to grasp that investing in individual stocks such as Netflix comes with distinct risks and may not be appropriate for every investor. Prior to making an investment decision, it is recommended to seek guidance from a financial advisor, carefully assess your financial objectives, risk threshold, and the need for a diversified portfolio. Moreover, acquiring a fundamental understanding of stock trading and the process of obtaining Netflix shares is fundamental.
*Note: All facts & figures as of 16-04-2021
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