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 $465.74, down 1.74% from the previous day, and has increased 46.94% in one year. It has overperformed other stocks in the Entertainment industry by 0.46 percentage points. Netflix stock is currently +70.34% from its 52-week low of $273.41, and -3.97% from its 52-week high of $485.00.
At the moment, there are 437.68M NFLX shares outstanding. The market value of NFLX is $203.84B. In the last 24 hours, 4.2M 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 45.66x, relative to Entertainment industry P/E ratio of 42.85x
- NFLX could be overvalued based on its P/B ratio of 9.22x, relative to Entertainment industry P/B ratio of 2.4x
- NFLX may be overvalued based on its PEG ratio of 2.38x
You can access additional valuation analysis on NFLX's stock here.
A quick look at NFLX Financials
Passed Health Checks:
- NFLX earnings of $5.79B is not sufficient to cover its interest payments.
- NFLX's operating cash flow of $6.06B allows it to safely service it's debt of $14.30B.
- Total NFLX debt is lower than 5 years ago, relative to shareholder equity.
- There are more short-term assets than short-term liabilities on the NFLX balance sheet.
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 1.24.
- NFLX profit margin has gone down from 16% to 13.8% in the past year.
Is Netflix stock a Buy, Hold, or Sell, according to Wall Street analysts?
Out of 26 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
Benjamin Swinburne, a top 7% analyst from Morgan Stanley upgrades NFLX to a strong buy rating and raises their NFLX price target from $430.00 to $475.00, on Oct 19, 2023.
Morgan Stanley's Benjamin Swinburne upgraded their rating on Netflix (NASDAQ: NFLX) from Hold to Strong Buy on 2023/10/19. The analyst also raised their price target by 10.5% from $430 to $475.
Swinburne explained their upgraded rating and hiked price target by saying that "Morgan Stanley's prior view was based on concerns that consensus expectations for Netflix's new growth drivers - paid sharing and advertising - were too high."
After climbing to $475 post Q2's print in 2023/07, the analyst noted that both of those estimates and the stock's price have declined, "and sentiment around the advertising opportunity, in particular, has soured.
"Against investors' rising anxiety and the falling stock price," a read of Netflix's Q3 2023 earnings report indicates that the company's business has been accelerating, the paid-sharing initiative is working, and competitors have pulled back," Swinburne said.
Morgan Stanley has regained confidence that "Netflix will deliver the objectives it set out a year ago, i.e., accelerating revenue growth back to double digits and expand margins," the analyst added.
Earnings Report
For Q3 2023, Netflix reported:
- EPS of $3.73, which beat the Zacks Consensus Estimate by 7.8% and, by 20.3%, Q3 2022's $3.10.
- Revenue of $8.542B, which beat the Zacks Consensus Estimate by 0.11% and Q3 2022's $7.926 by 7.8%.
For Q4 2023, management guided:
- EPS of $2.15.
- Revenue of $8.692B.
For FY 2023:
- Free cash flow of $6.5B, up from the prior guidance of at least $5B.
- Operating margin of 20%, the high end of the prior 18% to 20% guidance.
For FY 2024:
- Operating margin of 22% to 23%.
In its Letter to Shareholders, Netflix management noted: "The last six months have been challenging for our industry given the combined writers and actors strikes in the US.
"While we have reached an agreement with the WGA, negotiations with SAG-AFTRA are ongoing.
"We’re committed to resolving the remaining issues as quickly as possible so everyone can return to work making movies and TV shows that audiences will love."
Barton Crockett, a top 24% analyst from Rosenblatt maintains NFLX with a hold rating and raises their NFLX price target from $400.00 to $404.00, on Oct 19, 2023.
Justin Patterson, a bottom 13% analyst from KeyBanc upgrades NFLX to a strong buy rating and announces their NFLX price target of $510.00, on Oct 19, 2023.
Matthew Harrigan, a bottom 3% analyst from Benchmark reiterates NFLX with a strong sell rating and maintains their NFLX price target from $325.00 to $325.00, on Oct 16, 2023.
Matt Farrell, a top 17% analyst from Piper Sandler maintains NFLX with a hold rating and lowers their NFLX price target from $440.00 to $400.00, on Oct 11, 2023.
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 $4.53B. Over the past 5 year, NFLX's earnings have gone up by 28.69% per year. This was faster than the Entertainment industry average of 4.88%.
Last year, NFLX revenue was $32.74B. During the last five year, NFLX's revenue has increased by 17.06% per year. This was faster than the Entertainment industry average of 12.91%.
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.
Richard N. Barton, Director of NFLX, was the latest NFLX insider to sell. They sold $217,500.00 worth of NFLX shares on Nov 8, 2023.
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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