in

How to Buy Netflix Stock (NFLX) in 2023 – Complete Guide

This guide teaches you how to buy Netflix stock in 2023. We’ll start by illustrating Netflix’s basic stock investment process embraced by most regulated brokers. We will then analyze this process, covering each step, in detail. The guide will discuss where to buy Netflix stock and what to look for in the best Netflix stock broker.

Netflix is the most popular digital video streaming company with an interesting story.

Starting as a DVD rental company, the video-on-demand company has taken significant steps that have helped revolutionize the scene of movie and television distribution and dominate the digital streaming industry over the past 15 years.

But how do you buy NFLX stock today, and should they be on your stock watch list?

Read on to find out everything you need to know about buying Netflix stock in 2023. We’ll also help you decide if it’s worth buying Netflix stock in 2023.

How to Buy Netflix Stock (NFLX) – Overview

Here is the basic Netflix stock buying process implemented by most regulated brokers. It’s quite simple and you don’t need the help of experts to buy your first NFLX title.

  • Step 1: Create a stock trading account – Start by identifying a highly regulated broker and create a stock investor account with them.
  • Step 2: Verify your identity – Each regulated broker will ask you to verify your trader account before you can start funding that account or use it to buy and sell Netflix stock.
  • Step 3: Deposit funds – After the broker sends you an email notification informing you that the account has been approved, log in and fund that account. Remember that different brokers maintain various deposits and trading minimums. They also support different funding methods. Consider all of these when choosing the best broken Netflix stocks.
  • Step 4: Buy Netflix Stock – Search for NFLX shares on the broker’s trading platform, press the “BUY” option and proceed to customize the buy order.

That’s all! By following these simple steps, you can buy Netflix stock in less than 10 minutes.

Below, we explore these steps in detail, covering where to buy Netflix, everything you need to know about the video streaming company, and discussing whether NFLX stock is worth buying.

Step 1: Decide where to buy Netflix stock

Netflix is one of the most popular companies in the world. In addition to being a Big Tech (FAANG) stock, Netflix is an important component of popular indices and ETFs in the United States and internationally. Therefore, it is listed with countless stock brokerages in and out of the United States, which complicates the decision of where to buy Netflix shares.

Below, however, we outline some of the factors that every stock investor needs to consider when looking for the best Netflix stock broker:

  • Cost of trading: Check all fees, commissions and other charges (both commercial and non-commercial) imposed by different brokers. Assess the impact these will have on the profitability of your trades and register only with the most convenient broker.
  • Access to tools: Compare trading, analysis, risk management, educational, research and other resources used by different brokers. Register only with the broker with the richest resources of trading tools and resources.
  • Security: It is important that your stockbroker implements different security measures around your funds and personal data. They should, for example, secure your deposit with the likes of FDIC or FSCS. They should also have adequate controls over access to and sharing of your sensitive personal information.
  • Regulation and reputation: We recommend that you only create a stock investor account with a highly regulated broker. This broker should also have a proven track record of reliability and customer service.
  • Account Minimums: Different brokers maintain different minimum deposit and trading limits. Create a trader account only with a broker whose minimum deposit/trade you can comfortably afford.

To help you start investing in Netflix stocks, our analysts have reviewed dozens of popular online trading platforms. In the end, they opted for the following two as Netflix’s best stock brokers.

Let’s discuss both of them to understand how each works and what makes it the best place to buy Netflix stock.

  • eToro – Best Netflix Stock Broker for Convenience and Copy Trading

Started in 2007, eToro Over the years, has developed into one of the largest and most popular online stock trading platforms. Today it has attracted 25+ million traders who interact with 5000+ financial instruments on its network. These range from Netflix stocks, 3000+ stocks, commodities, indices, ETFs, currencies and cryptocurrencies.

Several factors make eToro stand out as one of the best places to buy Netflix and other stocks. It has a simple and straightforward client onboarding process, has a highly intuitive trading interface, and is a cross-platform broker (available as a web trader and on a mobile app).

It also has a rich resource of educational and trading tools, starting with a free demo account, supports a wide range of payment options, allows you to trade both actual stocks and stock CFDs, and is highly regulated and reputable.

But we consider it the best Netflix stock broker because of its convenience and social/copy trading element. For starters, eToro is a commission-free broker and only asks you to deposit a minimum of $10 to start trading ($200 if you trade copies). When you buy NFLX stocks here, you just need to part with a highly competitive spread.

Its social trading tools allow for seamless interaction between all users of the platform. Experts learn from each other and collaborate on different projects. Beginners learn and receive tutoring from experienced traders.

Copy trading, on the
other hand, allows anyone to earn passively on the platform. Experts receive a commission from eToro if they allow others to follow and copy their trading settings. Anyone else can earn without necessarily researching different instruments simply by mirroring the trading settings of highly successful traders on their accounts.

  • Capital.com – The most innovative trading platform

Capital.com is a very popular multi-asset trading platform. It operates one of the most innovative trading interfaces, which is one of the reasons why we consider it the best Netflix stock broker. For example, it was among the first online brokers to integrate artificial intelligence (AI) into its trading platform.

This trading platform is also equipped with some of the most advanced research, analysis, trading and risk management tools. The brokerage, for example, claims to integrate 70+ premium analytics tools into its platform.

Note that Capital.com is a pure CFD trading platform, which has made it extremely popular among stock derivatives traders. These are attracted by features such as its support for margin trading with leverage of up to 1:5 (for stocks) in most jurisdictions.

In addition to its proprietary web trading platforms and mobile apps, Capital.com supports third-party platforms, including TradingView and MT4. Some, especially MT4, present traders with a wider range of premium trading and analysis tools, in addition to mirror trading and algo-trading.

But these aren’t the only reasons why Capital.com is the best Netflix stock broker. Others include the fact that it is a multi-asset trading platform that lists stocks, indices, commodities, ETFs, currencies, and cryptocurrencies.

Capital.com is also convenient, as evidenced by the fact that it too is a commission-free broker, charges a competitive spread, and does not charge deposit/withdrawal processing fees. We must also add that to start trading on the platform, you only need to deposit at least $ 20 through one of the many payment methods supported by the broker.

Step 2: Search for Netflix (NFLX) shares

Before investing in Netflix, it’s important to gather as much information about the company as possible. You need to learn how it works, how it makes money, its current financial position and the factors that influence its stock price action.

All of these help you determine when to buy Netflix stock and whether to hold or sell these shares.

Here’s everything you need to know about Netflix.

What is Netflix?

Netflix is an American multinational digital streaming service provider and film production company. It is an on-video, subscription-based company specializing in distributing movies and TV series on behalf of production companies. But he also runs his own production company that creates movies, TV series and comedy specials under the “Netlfix Originals” brand.

The company was founded in 1997 as a DVD-by-mail service provider that rented DVDs to customers in the United States through mail. It was also one of the first movie rental companies to embrace Video CDs (VCDs) as a replacement for bulky and expensive DVDs. And in 2007, he premiered the online video streaming service Netflix that would go on to revolutionize the entertainment industry.

The company was founded by Reed Hastings and Marc Randolph in Scotts Valley, California, but has since moved its headquarters to Los Gatos, California, United States.

Netflix’s big breakthrough came with the launch of the online video streaming platform. Netflix’s innovativeness has given it a huge competitive advantage since the VCD rental era. From a handful of subscribers a few days after launch, the video streaming company increased the number of subscribers to more than 223 million at the end of 2022.

It has also enriched its catalog of films and series. He introduced TV series and catalogs of very popular movies, integrated documentaries and launched Netflix comedy specials. Netflix also offers different video experiences for different users, ranging from 480 pixels to 4K video quality in different subscription plans.

Netflix Financial Data

Netflix makes money in two main ways. Most of its revenue comes from viewer subscriptions, with four subscriber plans. The Basic plan costs $9.99 per month, the Standard plan costs $15.49 per month, and the premium plan costs $19.99 per month. In November 2022, Netflix introduced the basic-with-ads plan that costs $6.99. Interestingly, Netflix still runs the DVD rental business in the US, which is its second-largest source of revenue.

Note that Netflix first became profitable in 2003, recording net income of $6.5 million and total annual revenue of $272 million. Since then, the growing subscriber base and the introduction of popular movies and TV shows have helped keep annual revenues and net income on a sustained uptrend.

The company’s annual revenue first exceeded $1 billion in 2007. It surpassed $5 billion in 2014 and surpassed $10 billion a decade after the streaming service’s launch in 2017. In 2019, Netflix’s annual revenue exceeded $20 billion in 2019, reached $24 billion in 2020, $29 billion in 2021, and surpassed $31 billion in the 12 months to September 2022. Its net income is also steadily increasing, having appreciated from $1.86 billion in 2019 to around $5+ billion in 2022.

Note that Netflix doesn’t pay dividends, choosing instead to reinvest in the company’s growth.

Historical Netflix price trends

Netflix became public in 2002, at the height of the Dot.com market crash, when it was listed on the NASDAQ. A total of 5.5 million common shares were used to the public at an IPO price of $15. Since then, Netflix shares have undergone two stock splits; 2 for 1 in February 2004 and 7 for 1 in July 2015. Each original Netflix stock was then split into 14 shares, giving it an adjusted IPO price of $1.

Like its subscriber base and annual revenues, the NFLX stock price has maintained an overall uptrend since its launch. It traded under $5 before the launch of the digital streaming service in 2007. But as soon as the digital streaming service began picking up pace in 2008, Netflix’s stock price embarked on a brisk run that saw it peak above $40 in the second quarter of 2011.

In the fourth quarter of 2011, however, Netflix dumped 75% of this peak value and its stock price fell below $10. This was attributed to the loss of subscribers after Netflix announced several subscription plans for DVD rental and streaming services.

The rebound was, however, rapid, and Netflix regained its 2011 peak price in the third quarter of 20213. It exceeded $50 before the end of that year and ran to reach $100 in June 2015. The uptrend continued, albeit with several time and short-lived declines, until November 2021. The NFLX reached its current all-time high of $691, more than 69100% above its IPO price.

2022, however, has been a tough year for the tech stock as it has lost up to 60% of this peak price. Much of this could be attributed to the bear market, declining customer numbers in the first quarter of the year, and plummeting technology stocks.

At the time of writing, Netflix is ranked 82nd among the most valuable companies in the world, with a market cap of $131 billion.

Factors Affecting the Netflix Share Price

After identifying where to buy Netflix stock and understanding how the digital streaming company works, you now need to master the different factors that affect NFLX stock. These will have the greatest influence on your buying, retaining and selling decisions.

Our analysts believe these are some of the factors that will have the greatest impact on Netflix’s stock price:

    Number of subscribers

  • : Netflix posted a net loss in the number of subscribers in the first quarter of 2022, for the first time since 2022. This caused panic among investors, triggering a massive sell-off and causing the NFLX stock price to plummet. As more and more brands enter the digital streaming space with friendlier plans, watch out for subscriber count reports as they affect the direction of the NFLX stock price.
  • Disgruntled viewers: You may also want to keep an eye out for growing viewer frustrations, particularly regarding canceled shows and the type of shows and TV series hosted on the platform. Growing frustrations and controversial shows will often trigger a drop in prices.
  • Fierce competition: Netflix faces stiff competition from Disney Plus, Apple TV, and Prime TV. Not only are they scoring more subscriber numbers, but they are also more competitively priced. They have also pledged to revive/spin-off some of the most popular movies and shows. All of this comes at the expense of Netflix and NFLX stock prices, which could be affected if more subscribers abandon the platform in favor of competition.
  • Company Financial Data: As is the case with any other profit-oriented company, the company’s revenues will always play a vital role in influencing its stock price. Revenue gains almost always translate into earnings for the stock price – and vice versa.
  • Industry/Market Trends: The direction and performance of the technology and entertainment industry, as well as the broader stock market, will have a significant influence on the NFLX stock price. The current decline in NFLX prices can – albeit in part – be attributed to the crash in tech stocks and the bear market in 2022. All other factors have remained constant, the threat of a recession in 2023 can be expected to cause prices for NFLX shares to fall further.

Step 3: Open a stock investor account and buy Netflix (NFLX) stock

Want to start buying Netflix stock right away? Consider using the following guide, which guides you through the process of buying your first Netflix shares on the most popular and highly regulated eToro trading platform.

  • Open a stockbroker account

On your browser, open the official eToro website or download the eToro mobile trader app from the app store. Click the “Sign Up Now” icon on both platforms and complete the user registration form that appears.

Enter details such as your name and email address, country of residence and phone number, source of income and trading experience. You also need to find a unique account name and a strong password.

  • Verify your identity

Since eToro is a regulated broker, it will ask you to verify your identity. Send a copy of government-issued IDs, such as your national ID card, passport, or driver’s license with the names used to create the account.

  • Deposit funds

Log in to the approved broker account and tap on the “Deposit Funds” icon. In the funding tab that opens, choose one of the supported payment options and follow the instructions to deposit at least $10 into that account.

  • Buy Netflix Stock

After the money is reflected in your trading account, click the “Discover” button to reveal the assets supported on the platform. Choose “Actions” and find “Netflix” from the list of supported actions supported on the platform.

Click on the “BUY” option against the stock and use the trading tab that opens to customize the trade. Indicate the number of Netflix shares you want to buy or how much you want to invest in Netflix, then tap the “Open Trade” button to execute the trade.

Strengths and weaknesses of Netflix shares

Before you hit the buy button against Netflix shares on any brokerage, you need to ask yourself: is Netflix worth investing in? And to answer this question, you need to compare the benefits of buying NFLX stock today with the possible shortcomings of holding an NFLX stock.

To help you get started, we’ve identified a few reasons why you should consider buying Netflix stock in 2023. But let’s also discuss some reasons not to buy Netflix stock today.

Reasons to buy Netflix stock in 2023

  • Undervalued: Netflix is currently trading almost 60% below its all-time high, implying that the coin is massively undervalued. This gives you the opportunity to buy the market-leading stock in a dip and have the chance to 2X your investment when it eventually recovers.
  • Market recovery: Even with subscriber growth resuming and positive annual revenue, Netflix’s stock price still fell sharply in 2022. This is largely attributable to the extended bear market and the collapse in technology stocks. The two, as well as NFLX, will eventually recover, which makes it a good time to start accumulating Netflix share.
  • Financial solidity: Netflix has pretty solid financials. Its debt levels are manageable, its total revenue and net profit are rising, and the number of subscribers is growing again. These inspire investor confidence in the brand and are likely to help push up the NFLX stock price.
  • Netflix’s secret weapon: In a battle for more viewers, Netflix introduced the “Basic With Ads” subscription plan. The ad-supported subscription plan is competitively priced and should attract more paying viewers, helping streaming improve its competitiveness. It is also expected to help Netflix expand its revenue base, namely paid advertising.

Reasons to buy Netflix stock

  • Increasing competition: Netflix faces stiff competition from Amazon Prime, Apple TV, and Disney Plus. Their growing number of subscribers, richest catalog of movies and TV series, backing extremely popular and financially sound brands, and competitive pricing threaten Netflix’s dominance in the digital streaming industry and its share price.
  • Declining number of subscribers: More than a bear market or rising inflation, the biggest threat to Netflix’s stock price is declining subscriber numbers. The fact that Netflix and other analysts aren’t too optimistic about the company’s future subscriber growth says now may not be the best time to invest in the digital streaming platform.

Conclusion – How to Buy Netflix Stock (NFLX)

Netflix dominates the global digital streaming industry. It has the largest subscriber base, one of the richest movie and TV series catalogs, and multiple subscription plans to cater to different customers. Since its founding as a DVD rental company, Netflix’s growth has been in a sustained uptrend. This explains its overall NFLX stock trend, making it one of the most profitable investments of the last two decades.

However, its
share price has been on a downward trend, losing nearly 60% of its peak price in 2022. There is also growing concern about the number of subscribers and growing competition from Amazon Prime and Disney Plus.

There is, however, still a lot of investor confidence in the brand. Most analysts consider NFLX shares a “BUY” and expect them to recover — possibly reaching a new all-time high — as soon as the bear market that caused tech stocks to crash dissipates.

Want to buy Netflix shares at the current decline? Use the step-by-step guide to equity investing discussed above.

Frequently Asked Questions about How to Buy Netflix Stock

How can I buy Netflix stock today?

Start by finding a highly regulated broker that lists Netflix stocks. Create a stock investor account with them and verify your identity. Fund this account and place a buy order for NFLX stock.

Why did Netflix’s stock price fall in 2022?

In 2022, Netflix experienced its biggest drop ever in the stock price and it could be attributed to three key factors. The first was the decline in the number of subscribers in early 2022, it could also be attributed to the collapse of tech and entertainment industry stocks and could also be attributed to the extended bear market.

Is Netflix worth buying in 2023?

Yes, most stock price analysis and forecasts believe that Netflix shares in 2023 are worth buying because; NFLX is currently undervalued, the company is quite resilient, and the current bear market cannot last forever.

Will Netflix’s share recover in 2023?

We can’t say with the utmost accuracy whether the Netflix stock price will rebound in 2022, especially when you consider the many factors that influence the action of the NFLX stock price. The most widespread is the threat of a possible global recession to the global economy.

0 Comments
Inline Feedbacks
View all comments
invest 00027

How to Buy Spotify Stock (SPOT) in 2023 – Complete Guide

invest 60

How to Buy Tesla (TSLA) Stock in 2023