How to Buy Netflix Stock
Netflix Inc
Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and mobile games across various genres and languages.
Netflix stock last closed at $561.23, down 0.63% from the previous day, and has increased 74.76% in one year. It has overperformed other stocks in the Entertainment industry by 0.61 percentage points. Netflix stock is currently +77.82% from its 52-week low of $315.62, and -12.17% from its 52-week high of $639.00.
At the moment, there are 430.96M NFLX shares outstanding. The market value of NFLX is $241.87B. In the last 24 hours, 4.3M NFLX shares were traded.
How to Buy Netflix Stock
Not sure how to invest in Netflix stock? Here's how.
- Figure out where to buy Netflix stock: You need to decide on an online brokerage, but don't worry - we've sifted through dozens of online stock brokerages and apps to help you determine where to buy Netflix stock.
- Open a brokerage account: Sign up for 0% commission trading with the highest-rated brokerage we've identified.
- Fund your investment account: Choose your payment method and add your details.
- Research Netflix stock: The Netflix ticker symbol is NFLX. Is Netflix stock a good investment? Should you buy shares of NFLX? How do NFLX's underlying business fundamentals look? Do top analysts think Netflix is a good buy? Why has NFLX's stock price moved recently? (Hint: Our stock analysis website can help you evaluate if NFLX is a good stock to buy).
- Make your NFLX purchase: Decide if you will purchase NFLX shares at the current market price or use a limit order to purchase NFLX shares at a particular price.
- Keep an eye on your investment in NFLX: Create a watchlist to watch your position in Netflix shares.
Step 1: Figure out where to buy Netflix stock
You will need an online brokerage account in order to access the NASDAQ market and buy NFLX stock.
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Open eToro AccountStep 2: Open a brokerage account
Now that you've chosen your brokerage, the next step is to fill out some personal information so you are able to buy NFLX today.
How to Open a New Investment Account on eToro
- Click here to get started.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Provide your personal info to open your new brokerage account.
- Send your application by hitting the "Create Account" button. Get started with eToro today
Step 3: Fund your investment account
Now that you have filled out your info on the best stock market app for beginners, you need to deposit funds:
Check out this video walkthrough if you need help transferring money into your new brokerage account.
Step 4: Research Netflix stock
After you have selected the best place to buy Netflix stock, it's critical to evaluate their stock before you buy, so you actually comprehend the risk as well as the upside.
Overview of key NFLX info
Netflix Zen Score
WallStreetZen was created to help everyday investors perform more accurate fundamental analysis quickly.
You can see all of the due diligence checks on NFLX's stock page.
Is NFLX stock properly valued?
Investors use many financial metrics, analyses, models, and charts to gauge NFLX's fair value.
Using relative valuations metrics:
- NFLX may be overvalued based on its P/E ratio of 38.13x, relative to Entertainment industry P/E ratio of 35.95x
- NFLX could be overvalued based on its P/B ratio of 11.32x, relative to Entertainment industry P/B ratio of 2.64x
- NFLX may be overvalued based on its PEG ratio of 2.08x
You can access additional valuation analysis on NFLX's stock here.
A quick look at NFLX Financials
Passed Health Checks:
- NFLX profit margin has gone up from 13.2% to 18.4% in the past year.
- NFLX earnings of $8.05B is not sufficient to cover its interest payments.
- NFLX's operating cash flow of $7.31B allows it to safely service it's debt of $14.02B.
- There are more short-term assets than short-term liabilities on the NFLX balance sheet.
- Total NFLX debt is lower than 5 years ago, relative to shareholder equity.
Failed Health Checks:
- There are more long-term liabilities than short-term assets on the NFLX balance sheet.
- NFLX has a relatively high debt to equity ratio of 1.29.
Is Netflix stock a Buy, Hold, or Sell, according to Wall Street analysts?
Out of 28 Wall Street analysts who give ratings on NFLX, the consensus analyst rating on Netflix is a Buy
Please keep in mind that analyst ratings are not recommendations, nor are they financial advice.
Latest NFLX Analyst Upgrades/Downgrades
Laura Martin, a top 2% analyst from Needham upgrades NFLX to a buy rating and announces their NFLX price target of $700.00, on Apr 19, 2024.
Barton Crockett, a top 12% analyst from Rosenblatt maintains NFLX with a hold rating and lowers their NFLX price target from $554.00 to $540.00, on Apr 19, 2024.
Maria Ripps, a top 25% analyst from Canaccord Genuity downgrades NFLX to a hold rating and lowers their NFLX price target from $720.00 to $585.00, on Apr 19, 2024.
Canaccord Genuity's Maria Ripps downgraded their rating on Netflix (NASDAQ: NFLX) from Strong Buy to Hold on 2024/04/19. The analyst also lowered their price target by 18.8% from $720 to $585.
In an assessment of Netflix's 2024/04/18-dated Q1 2024 earnings report, Ripps said the company's quarterly performance exceeded expectations.
The analyst added that the streaming service's paid sharing business continued to grow, leading to higher revenue and better-than-expected profitability.
However, regardless of these "largely solid results and outlook," Ripps does not see any significant growth drivers in the next quarters.
The analyst cautioned investors that the company's value has increased by 90% in the past year, saying, "you would be better off seeking opportunities elsewhere for potential gains."
Netflix's paid sharing probably accelerated member growth, but little information about new subscribers makes things confusing, Ripps noted.
Earnings Report
For Q1 2024, Netflix reported:
- EPS of $5.28, which beat the Zacks Consensus Estimate of $4.51 and, by 83.3%, Q1 2023's $2.88.
- Revenue of 9.37B, which beat the Zacks Consensus Estimate by 1.18% and Q1 2023's $8.16B by 14.8%.
- 28.1% operating margin, up from Q1 2023's 21%.
- 269.6M subscribers, up from Q1 2023's 232.58M.
Management guided:
For Q1 2024:
- Revenue growth of 16%.
- Fewer net new subscribers in Q2 than Q1 because of typical seasonality.
- ARM (Average Revenue per Membership) up Y/Y on a F/X neutral basis in Q2.
For FY 2024:
- Revenue growth of 13% to 15%
- Operating margin of 25%, up from the prior guide of 24%.
In its Letter to Shareholders, management said: "We’re off to a good start in 2024.
"To sustain healthy growth long term, we must continue to:
- "Improve the variety and quality of our entertainment — with more, great TV shows and movies, a stronger slate of games and must-watch live programming.
- "Innovate in our product and marketing so fans can more easily discover, immerse themselves in, and talk about the stories they love, fueling fandom and the Netflix Effect.
- "Tap into additional revenue and profit pools — in particular, scaling ads to become a more meaningful contributor to our business in ‘25 and beyond.
"We have built a hard-to-replicate combination of a strong slate, superior recommendations, broad reach and intense fandom, which drives healthy engagement on Netflix.
"Improvement in these key areas is the best way to delight our members and continue to grow our business. "
Jeffrey Wlodarczak, a bottom 12% analyst from Pivotal Research maintains NFLX with a strong buy rating and raises their NFLX price target from $765.00 to $800.00, on Apr 19, 2024.
Laurent Yoon, a bottom 43% analyst from Bernstein maintains NFLX with a hold rating and raises their NFLX price target from $490.00 to $600.00, on Apr 19, 2024.
You can dive deeper into what analysts are projecting on the Netflix stock forecast page.
NFLX Technicals
NFLX Performance Numbers
Last year, NFLX earnings were $6.44B. Over the past 5 year, NFLX's earnings have gone up by 38.48% per year. This was faster than the Entertainment industry average of 11.57%.
Last year, NFLX revenue was $34.93B. During the last five year, NFLX's revenue has increased by 16.02% per year. This was faster than the Entertainment industry average of 14.89%.
Find out more about NFLX's earnings and revenue performance here.
Latest Insiders Trades at NFLX
In the last 12 months, insiders at NFLX have sold more shares than they have bought.
Reed Hastings, Executive Chairman of NFLX, was the latest NFLX insider to sell. They sold $805,044.78 worth of NFLX shares on Apr 1, 2024.
Get more info about who owns NFLX stock here.
Does NFLX provide a stable income stream?
No, Netflix doesn't provide an income stream by paying out dividends.
What others are saying about NFLX
One of the primary reasons eToro is our highest-rated brokerage is because of its social trading community.
Click below to find out what other traders have to say.
Step 5: Make your NFLX purchase
There are two primary types of orders:
- Market order: A market order is an order to buy or sell a security at the best price on the market.
Market orders are generally fine. - Limit order: A limit order enables you to buy or sell a security at a specific price (or better).
If you want to be certain you're buying or selling at a particular price limit, use a limit order.
Hit the Open Trade button and eToro will execute your order.
If you want additional info about buying stocks on eToro, watch the helpful video below:
Step 6: Keep an eye on your investment in NFLX
Now that you own some NFLX stock, you'll want to stay up-to-date on your investment.
Add NFLX to a watchlist to track your NFLX stock.
NFLX Feed
How to Buy Stock in Netflix
To reiterate, here are the 6 steps to buy Netflix stock:
- Figure out where to buy Netflix stock
- Open a brokerage account
- Fund your investment account
- Research Netflix stock
- Make your NFLX purchase
- Keep an eye on your investment in NFLX
If you need a brokerage, eToro is our recommended option.
Get Started with eToro TodayIf you want to keep an eye on your new investment in Netflix, click the button below.
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