Netflix is a world-leading entertainment company. It combines the best of both worlds: it offers consumers a vast library of content and operates as an online streaming service for TV shows, movies, documentaries, and more. Netflix has been winning awards worldwide for its original productions, including Stranger Things, Narcos and Bridgerton. At the 93rd Academy Awards this year, Netflix won 36 awards! The most out of any studio.
If you’re thinking about investing in such a stellar company, read this post first. We’ll go over all the information you need to know before buying Netflix stocks.
About The Company
Before you invest in Netflix, you’ll need to know some basic information about the company.
The story of Netflix is a success story. In 1997, Reed Hastings and Marc Randolph took off in 1999 after one of the founders mailed a brochure to Hastings’ house.
From the very beginning, Netflix had one goal: to offer people an easier way to rent DVDs online. They tested their product in a few markets in the initial stages and waited to see what consumers would think before expanding further. In 2007, they expanded into streaming content online only.
After three years of developing and testing their streaming service, Netflix began offering its online streaming service to the entire United States. This expansion marks where we are today: 2021, and Netflix has expanded its services worldwide and is taking over the entertainment industry.
Netflix currently has over 209 million subscribers from all over the world. Currently, consumers from 190 countries have access to their online streaming services. They have a data bank of more than 100 million titles to offer to their customers, including original content and third-party productions.
Netflix in The Stock Market
Netflix became available to trade on the New York Stock Exchange (NYSE:NFLX) in October 2002. It didn’t take long for the company to become a household name, and in 2011, it became part of the S&P 500 Index.
Netflix is currently trading around $590 per share, which means that this stock has grown by 10% year-to-date. It’s a big company known across 190 countries, so investors worldwide are looking to invest in it.
In 2020, the American company made a total of 25 billion dollars in revenue. The majority of their income comes from subscriptions, which is why they constantly need to think of new ways to attract and retain their users—and with success
How To Invest In Netflix
If Netflix now seems like an attractive option to you, then you’re probably thinking about how to invest in Netflix. It’s easier than it sounds! Here’s what you need to do:
Do You Need A Broker?
There are several ways to buy shares. First off, let’s talk about finding a broker because this is where most people get stuck. To invest money in Netflix shares, you’ll need an online brokerage account first. This gives you access to the financial markets and allows you to buy stocks.
You could go to your bank and ask them to invest in shares for you, but this method is usually less effective.
However, if your bank does offer it, this might be the best option for you. You could also choose to buy stocks yourself using a discount brokerage like E-TRADE or Vanguard, but this option is much more time-consuming.
If neither of these options sounds appealing to you, a Robo-advisor is an excellent alternative to help you invest. Robo-advisors are online platforms that offer to buy stocks for you using algorithms and smart software—in exchange for a small fee.
Online Brokerage Accounts
Your first step should be opening a brokerage account. There are tons of online brokerage accounts out there, so finding one shouldn’t be that difficult, but choosing the right one for your needs can prove to be more complicated.
Make sure to choose an account that offers low fees, and that is easy to use. You can then either open a new brokerage account or transfer money from your current account, so you have cash on hand to invest in shares.
Once your money is ready, it’s time to buy some shares yourself. Again, this step is easier said than done, especially if you’ve never bought stocks online before.
You should also understand that this process will be much easier if you choose a market with a positive view of the company’s long-term future because in the stock market, emotions impact prices more than anything else.
Follow these steps, and you’ll be Netflix-rich before you know it! Investing in the stock market can seem like a daunting task, but it can lead to huge returns if done right.
Benefits of Investing in Netflix
Using this method, you can earn some extra cash and grow your savings for the future.
It’s also worth mentioning that Netflix has practically become a household name at this point, considering how many people use its services. The chances are that you’ve already heard of it or even used it yourself!
Netflix Is Growing Fast, And So Are The Stocks
Rising subscribers and new revenue streams, such as advertisements on their shows, have turned it into a profitable company. This is why it’s not surprising that its stock has been steadily climbing since 2014—and will continue to do so in the years to come.
Conclusion: Netflix’s Future Looks Bright
Last but not least, let’s talk a little bit about what you can expect from Netflix in the years to come. The question is: how will it adapt to the ever-changing market?
Netflix knows that they’re going up against some stiff competition with other streaming providers like HBO and Amazon Prime Video—and this is probably going to be a sore point for them. Their shows will also compete with their subscribers’ favorite movies and shows.
But at the same time, Netflix knows that it’s much better than competitors like Apple because it offers a better service at a lower cost—making it more accessible to everyone. Not to mention its global presence and social media following, making it an attractive proposition for advertisers.
All these factors combined mean that Netflix has a bright future ahead of it. Their stock is bound to keep climbing, so now is a perfect time if you want to get in on the action!