How to Buy Netflix Stock
Netflix Inc
Netflix, Inc. provides subscription streaming entertainment service. It offers TV series, documentaries, and feature films across various genres and languages.
Netflix stock last closed at $224.07, down 1.03% from the previous day, and has decreased 62.19% in one year. It has underperformed other stocks in the Entertainment industry by 0.09 percentage points. Netflix stock is currently +37.71% from its 52-week low of $162.71, and -68.04% from its 52-week high of $700.99.
At the moment, there are 444.71M NFLX shares outstanding. The market value of NFLX is $99.65B. In the last 24 hours, 8.2M 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. It's the best place to buy NFLX stock.
- 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.
Our favorite brokerage: eToro
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Get $10 towards your your NFLX stock purchase by signing up for an account with eToro today.
Open eToro AccountStep 2: Open a brokerage account
Now that you've chosen the next step is brokerage, chosen to fill out some personal details so you can buy NFLX today.
How to Start a New Investment Account on eToro
- Click here to get started.
- Provide your personal data to start your new brokerage account.
- Send your data by pressing the "Create Account" button.
Step 3: Fund your investment account
Check out the video below if you need help depositing funds into your new brokerage account.
Step 4: Research Netflix stock
It's crucial to analyze stocks before you invest, so you truly wrap your head around the risk as well as the opportunity.
Netflix Numbers
NFLX Overview
WallStreetZen was built to help average investors perform more accurate fundamental analysis quickly.
You can view all of the due diligence checks on NFLX's stock page.
Is NFLX stock overvalued?
Investors use many financial metrics, analyses, models, and charts to gauge NFLX's intrinsic value.
Using relative valuations metrics:
- NFLX may be overvalued based on its P/E ratio of 19.52x, relative to Entertainment industry P/E ratio of 16.98x
- NFLX may be overvalued based on its P/B ratio of 5.22x, relative to Entertainment industry P/B ratio of 1.74x
- NFLX may be overvalued based on its PEG ratio of 5.1x
You can do additional valuation research on NFLX's stock here.
NFLX Financial Health Summary
Passed Health Checks:
- Total NFLX debt is lower than 5 years ago, relative to shareholder equity.
- NFLX profit margin has gone up from 15.9% to 16.4% in the past year.
- There are more short-term assets than short-term liabilities on the NFLX balance sheet.
- NFLX earnings of $6.56B is not sufficient to cover its interest payments.
Failed Health Checks:
- NFLX's operating cash flow of $704.69M allows it to safely service it's debt of $14.23B.
- 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 1.43.
Is it a good time to buy Netflix stock, according to Wall Street analysts?
Out of 41 sell side analysts who give forecasts on NFLX, the consensus analyst rating on NFLX is a Hold
Should I buy or sell NFLX stock?
Based on 41 analysts offering ratings for Netflix Inc.
Most Recent NFLX Analyst Upgrades/Downgrades
Jason Helfstein, a bottom 42% analyst from Oppenheimer upgrades NFLX to a buy rating and announces their NFLX price target of $325.00, on Sep 19, 2022.
Helfstein upgraded Netflix, Inc. from Hold to Buy, assigning a $325 price target.
The launch of Netflix's advertising tier will help it regain subscribers, drive average revenue per user, and slow churn, the analyst predicted.
The company is "uniquely positioned to aggregate large audiences" and to control the timing of series launches for top-tier advertisers, imposing high CPMs*, Helfstein said.
Netflix will achieve global advertising revenue of $4.6B in 2025, driving total revenue to $42.4B, with 282M subscribers, the analyst predicted, (bullishly) noting that "both of which are 3% and 6% above the Street's expectations."
Even when challenged by recent headwinds, Netflix's viewership remains the highest among competitors, Helfstein reminded investors, "and streaming will continue to take market share from linear TV."
* From here and here: Cost per thousand (CPM), is a marketing term used to denote the price of 1,000 advertisement impressions on one web page. If a website publisher charges $2.00 CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad.
On 2022/09/01, Netflix was reportedly seeking a streaming industry-leading $60 CPM, according to Ad Age. The Wall Street Journal says the number to reach 1,000 viewers is more likely to be $65 (prior to that, the WSJ suggested CPMs could “eventually” reach $80). For comparison, Disney+ has reportedly sold ads at a $50 CPM.
Jason Bazinet, a bottom 3% analyst from Citigroup maintains NFLX with a strong buy rating and raises their NFLX price target from $275.00 to $305.00, on Sep 16, 2022.
Mark Mahaney, a top 10% analyst from Evercore ISI Group upgrades NFLX to a buy rating and raises their NFLX price target from $245.00 to $300.00, on Sep 15, 2022.
Tim Nollen, a bottom 13% analyst from Macquarie upgrades NFLX to a hold rating and raises their NFLX price target from $170.00 to $230.00, on Sep 7, 2022.
Andrew Uerkwitz, a top 16% analyst from Jefferies maintains NFLX with a hold rating and lowers their NFLX price target from $243.00 to $230.00, on Sep 7, 2022.
You can dig deeper into what analysts are forecasting on the Netflix stock forecast page.
NFLX Trading Indicators
NFLX Earnings
Last year, NFLX earnings were $5.09B. During the last five year, NFLX's earnings have gone up by 68.71% per year. This was faster than the Entertainment industry average of 16.25%.
Last year, NFLX revenue was $31.03B. Over the last five year, NFLX's revenue has grown by 24.95% per year. This was faster than the Entertainment industry average of 14.09%.
Learn more about NFLX's earnings and revenue performance here.
Are NFLX executives and large shareholders buying or selling the stock?
In the last year, executives and large shareholders at NFLX have bought more shares than they have sold.
Reed Hastings, Co-CEO of NFLX, was the latest NFLX insider to buy. They bought $750,580.00 worth of NFLX shares on Jan 28, 2022.
Dig into more 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.
Get opinions from other investors
One of the reasons eToro is our highest-rated brokerage is because of its social trading community.
Click below to find out what other investors have to say.
Step 5: Make your NFLX purchase
There are two primary options:
- Market order: A market order is an order to buy or sell a security at the best available price.
Market orders are usually fine for most investors. - Limit order: A limit order is an order to buy or sell a security at a specific price (or better).
If you want to make sure you're buying or selling at a particular dollar amount limit, place a limit order.
Press the Open button and your broker will execute the order.
If you want additional info about investing in stocks on eToro, click the how to video below:
Step 6: Keep an eye on your investment in NFLX
Now that you own some shares in NFLX, you'll want to keep up with your new investment.
Put NFLX on a watchlist to see the latest developments about your NFLX stock.
NFLX Feed
How to Buy Stock in Netflix
To summarize, here are the 6 steps you need to take to buy Netflix stock right now:
- 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 require a online brokerage, eToro is our recommended option.
Get Started with eToro TodayIf you would like to keep track of your investment in Netflix, create your watchlist below.
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