How to Buy Netflix Stock – The Leader in Streaming
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Unless you live under a rock, 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 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 established a heavy market and made bold moves to prove its leadership.
Want to get your hands on NFLX stock? Let's go through the process.
Jump To
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, which will not take long. Let us look at four investment platforms that instantly allow you to buy Netflix stock.
Stash
If you are a beginner, Stash is the right platform for you. It allows you to start building a stock portfolio with ease. Creating an account will not take more than 10 minutes, and you can buy stocks, ETFs, and mutual funds. Stash offers multiple fee options from which to choose. You can take a pick based on your investing needs. For $3, you get retirement accounts; for $9, you get access to everything, including monthly market insight reports and custodial accounts.
You can also purchase fractional shares with Stash, so you can buy a part if you do not have the funds to buy a stock. Setting up a direct deposit to the Stash account is also possible.
Pros and Cons
Pros
- Begin investing with just $3
- Offers fractional shares
- Custodial and retirement accounts available
- Good for beginners
Cons
- Not for experienced investors
M1 Finance
M1 Finance is the perfect option for investors in the stock market with a buy-and-hold strategy. It allows you to customize the portfolio and allocate 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 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 $36 annually and a custodial account. A minimum of $100 is required for taxable accounts and $500 for retirement accounts. The purchases are commission-free, and it offers fractional shares.
Pros and cons
Pros
- Fractional shares
- Automatic rebalancing
Cons
- Not good for beginners
- No mutual funds
Robinhood
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, including access to Morningstar research to help you 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.
Pros and cons
Pros
- Commission-free trades
- Supports cryptocurrencies
- Fractional shares
- Perfect for beginners
Cons
- No mutual funds or bonds
Reasons To Use Stash For Investing
- Get $5 to Make Your First Investment
- Invest in Stocks and ETFs with $1 or Less
- Receive Your Paycheck up to 2 Days Faster
- No Overdraft Fees or Minimum Balances
Step 2: Research Netflix shares
Netflix Inc. is an American production and over-the-top content company headquartered in California. It was founded in 1997 by Marc Randolph and Reed Hastings. The company's primary business is subscription-based streaming, which offers a library of in-house television series, films, and content.
Netflix ended the first quarter of 2024 with 269.6 million subscribers. The company's initial business was DVD sales and rental by mail, but it was abandoned within a year of its founding. It expanded the business in 2007 with the introduction of streaming media. That was when streaming media was fairly new, and people paid for 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 2024, it is ranked as the 2nd most trusted brand in the world.
Netflix Inc. is listed on the Nasdaq under 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 and is making news for its 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 $537,930 today. That is a massive gain in 22 years.
Netflix dividend information
Netflix does not pay dividends and invests the profit back into the company. The media giant spends vast 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 had 47.9 million subscribers; in 2015, the number went to 62.7 million. Netflix went from 62 million to 192 million in the next five years to over 240 million. It has 269.6 million subscribers currently.
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 many households to give up traditional cable TV and opt for streaming services. It is expected that the trend will continue through 2024. 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 are adopting new services while sticking with it.
Strong fundamentals. Investors should always look at the company's fundamentals before purchasing the stock. In the latest quarterly report, Netflix has strong fundamentals and reported adding 9.3 million streaming subscribers in three months. Revenue rose 15% year over year in the first quarter to $9.37 billion.
The content sets Netflix apart. There is no shortage of streaming platforms today, but what 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. These include "The Queen's Gambit,” "Money Heist," “Bridgerton," and "Emily in Paris.” The content is a major draw for the subscribers. The subscribers are growing even after raising the prices for standard and premium subscription service tiers. The company racked up nominations and wins for various television and movie awards for the original programs.
New content will lead to new subscriptions. Due to the pandemic, the company had to slow down 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 producing new content, leading 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 earns from selling franchise products. The company sells toys, T-shirts, and concert tickets to your favorite shows and makes money through it. The online store will get more people to subscribe to Netflix. Besides consumer products, it is also dabbling in video games. Even if the contribution of these games 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 Netflix shares using Stash.
Open the website and click on Get Started. Now, you must provide your email address and password and click 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.
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.
FAQs
What was the share price of Netflix 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 May 3, 2024, Netflix shares cost $576.56
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. You can start your investment journey using online brokerage accounts like Stash, Wealthfront, or M1 Finance. 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 must consider your risk appetite when investing.
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Writer
Vandita Jadeja is a financial writer and editorial assistant at Joywallet. She loves to read and write about money and brings 7 years of experience from the financial industry. She loves coffee, mountains and sunsets.
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