Buy Netflix Shares: Easy Guide To The Best Asset Of The Century
Published: 16 September 2020 by Valentina
Years go by but the stock market becomes more and more attractive and, especially, some stocks are growing in an interesting way. An example? Netflix. So, is it worth to buy Netflix shares?
Preparing an investment plan and setting certain goals is essential to have a clear vision of what to expect.
Among the favorite assets, That of the best multimedia content distribution platform is always present: Netflix.
In this guide, we will see why Netflix assets should not be missed and which platforms are the best to buy Netflix shares without commissions and in a simple way.
eToro is one of the best investment platforms where to buy Netflix shares. We will talk about it thoroughly in our review, but first we will explain the reason for our choice.
Obviously, today there are numerous safe and commission-free investment platforms (the complete list is published below). We chose to investigate eToro because it is the only platform that also allows you to copy, in a completely automatic way, what the best investors in the world do.
In this way, even a beginner can get the same results as a true professional investor and, if he wants, can learn how to invest by observing what the best in the market are doing in real time.
To buy shares, it is better to get information first. So, let’s start from the history of Netflix in order to better understand how the company works and from where its fortune came.
Netflix is an American company founded in 1997; it has managed to reach success thanks to various services, which, as you can see, have been more than appreciated by the users.
The streaming service was launched relatively recently: In 2008. From then on, worldwide expansion was a direct consequence of what Netflix decided to offer to the global audience.
Establishing itself as a real giant in the media sector, Netflix has a turnover of 15.794 billion dollars.
With a stock market capitalization of 69,072.70 million dollars, this American company has always been one of the top investment choices for both private as well as institutional traders!
With really attractive numbers and data for future investments, this guide outlines the main advantages and possible disadvantages of buying Netflix shares.
Finally, we propose one of the solutions, currently considered among the best in terms of economic returns, to try online trading: CFD platforms.
Netflix: where does the company’s earnings come from?
A successful company owes its primary position on the stock exchange especially thanks to the numbers it records year after year, attracting the interest of both private as well as institutional investors.
Of course, behind the most important multinationals, there is a well-defined business model, an attractive offer to market demands, and well-designed advertising strategies.
In a general picture, Netflix has managed to score all these points, growing immeasurably in just over 10 years.
Starting its business by simply offering DVD rentals, the company is currently the main choice of those who choose to take advantage of online streaming services.
The target of the company is very broad, attracting customers who statistically range from 17 to 60 years.
In addition, it offers a wide variety of devices on which to use the appropriate platform, from TVs to gaming consoles to smartphones!
The sources of profit for Netflix
With the convenience of being able to watch your favorite series or movies at any time and with a fairly high number of titles to choose from, the American multinational’s main source of income is linked to subscriptions.
A pioneer in this sector, the company bases its main revenues on the money from the subscriptions of users who can choose the solution that best suits their needs.
Despite the competition in the industry, Netflix has always managed to maintain a leading position on the stock market.
According to some statistics, about 37% of the world population uses this platform; that means about 150 million users worldwide.
With important collaborations, such as Sky, the Netflix project aims towards greater evolution, so as to increase its importance and attract the attention of shareholders.
How to buy Netflix shares?
Deciding to invest in the stock market means moving a certain amount of money to obtain concrete revenues.
Therefore, it is necessary to opt for a solution that is practical, quick, and efficient. For this reason, we do not recommend relying on banking institutions.
It is now an obsolete solution, which has very slow deadlines, management costs, and high commissions. In addition, often those who are inexperienced in the finance sector, have difficulties because they do not receive the right support.
In this case, online CFD trading platforms are the best solution: Free, full of tools and functions, and understandable even by the less experienced.
Taking advantage of derivative instruments such as CFDs (Contracts For Difference) could be an excellent choice, as they allow you to benefit even from unfavorable market situations.
Netflix: earn even if the stock goes down with CFDs
Therefore, CFDs offer a double chance of return: With the right market forecast, even a decline could lead to the desired results.
Furthermore, the best CFD platforms have been created to facilitate the process of technical and fundamental analysis for traders, especially those who are new to the sector. Using graphs updated in real time and tools, such as leverage and stop loss, formulating a correct market forecast turns out to be much easier than you might think!
Of course, we must not underestimate the theory and, above all, the practice needed, if you do not want to make trivial mistakes that could negatively affect your money.
For this reason, we recommend not only relying on platforms regularly subjected to checks by institutions of international caliber, but also to opt for complete services that allow you to start with a demo account. In this way, you are able to test the effectiveness of your investment strategy.
This is one of the most complete and easy platforms in the market: eToro.
Buy Netflix shares with eToro
eToro, an internationally appreciated platform, is full of features that simplify and facilitate the technical analysis process for traders.
In fact, it is a broker used by both experienced investors as well as novice traders, as it offers an extremely simple and clear platform to use.
For those who are afraid of running into scams: eToro has all the necessary certifications that imply compliance with certain regulations, so as to protect users’ capital.
In addition to the control of entities such as CySEC and FCA, eToro is an ESMA broker (European authority of financial instruments and markets); ie, it meets the requirements established by the European Union to safeguard traders. The platform is therefore reliable and secure!
EToro’s success comes, above all, from two important innovations that have subverted the traditional methods of online trading: Social Trading and Copy Trading.
Therefore, the platform is the first online trading network. In simple terms, eToro allows investors to communicate with each other and exchange advice and useful information for the purpose of successful investments.
eToro and Copy Trading
This is a real advantage for inexperienced investors. Very tempting for those who do not know how to extrapolate the most important information on the assets and how to interpret their daily trend in the stock market.
But the main function that distinguishes eToro is Copy Trading: It allows you to view the transactions made by other investors and if you choose to follow them, their transactions will be replicated on your account.
This allows you to earn money even if you have little experience and to learn the best strategies simply by observing the most experienced traders.
It is important to follow more investors with different strategies and earnings goals, so as to diversify your portfolio and limit the risks.
With the possibility to use the platform also via smartphone, eToro is a dynamic and efficient investment solution.
The main goal of this broker is to give all traders the opportunity to transform the theory into personal returns.
With a demo account to start from, eToro could be the right choice to enter the complex world of online investments.
Furthermore, in eToro, you can find all the main assets. To give a few examples, the following are available for trading without commission:
- Facebook shares
- Amazon shares
- NVidia shares
- SKY shares
- Disney shares
Below, you can find the complete list of the best CFD brokers, without commissions, and suitable for beginners:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 100€
72.30% of retail CFD accounts lose money
Min. Deposit: 250€
Min. Deposit: 100€
Historical data of the group
The Netflix group went public in 2002 and has experienced amazing growth ever since. Listed both on the United States Stock Exchange and in its main Index (NASDAQ), the company has one of the highest capitalizations operating in the new technology sector.
Its path is characterized by some fluctuations, but it has always been marked by bullish trends and positive market phases, since the service has always evolved in line with the new needs of the public.
Regarding its evolution, a key year is 2012, a period in which the Netflix share price reached $ 40, showing that the stock was reaching a certain stability. In fact, the following year the multinational managed to reach a price of 400 dollars.
In September 2019, Netflix continued to record success, achieving approximately $ 5.25 billion in revenues.
With an increase of 31% compared to the previous year, the group is confirmed as a real giant of the NASDAQ index.
The shares in circulation exceed 430 million, making the company a noteworthy brand among other global giants.
The history of the group is essential to understand how and when is the best time to buy Netflix shares.
Netflix: Predictions for 2020
In recent years, Netflix has done nothing but record overall positive performances. Since its IPO in 2007, its value has grown so much that it is now one of the best stocks on Wall Street.
In 2020, we are experiencing a real war between on-demand services with quite dangerous competitors for Netflix. Despite this, the media giant seems not to be afraid of competition!
It must be said that the asset, currently, appears in a slightly unstable phase, mainly due to a decline in subscribers. Therefore, the new streaming platforms, such as Disney +, have actually had real repercussions on the prices of Netflix shares.
Risk-loving traders who aim to obtain substantial returns, should not be afraid of a bit of uncertainty.
Indeed, this bearish phase is clearly expected to take place in the short term. All of this gives Netflix a peculiarity that could prove favorable to investors: Daily volatility. An advantageous feature, especially for intra-day shareholders, who want to have revenues from short and sudden market changes.
Buy Netflix shares: Pros and Cons
The first advantage of Netflix shares concerns the price of the subscriptions. With affordable costs, the company manages to offer its service to a very wide audience.
In addition, by presenting original content, thanks also to the alliance with strategic partners, it has managed to obtain exclusive TV series, keeping the interest of its users alive.
It must be clear that the most famous streaming group in the world has all the necessary tools to respond positively to the demands of the public, respecting their tastes, and offering products in line with the needs.
It is a brand now known all over the world and which, in less than a decade, has managed to raise its quotations in an unexpected way!
In fact, the group’s desire to continue to expand does nothing but benefit the stock, as it means much wider visibility!
Netflix: An affordable asset
International customers, affordable costs, and exclusive products are strengths that should not be underestimated; they are the solid foundation of the company.
Operating in 190 countries around the world, Netflix’s fame has also spilled over into the stock market, making it an attractive asset and still full of potential.
Despite the resistance shown by Netflix, the blows taken by the development of new streaming platforms have been quite evident on the stock market.
Another disadvantage linked to investments concerns the poor diversification of activities. In simple terms, the company’s revenues are mainly linked to the streaming on demand service, so it is more complicated to take a stable position on the stock market.
Perhaps the increase in competition could mark a setback for the asset which, in reality, manages to keep its top position firmly thanks to the exclusive content that users enjoy.
This shows that the company has a good marketing plan, which aims to expand and improve the services offered in order to attract customers from all over the world. With the right partners and advertising, the group enjoys constant visibility.
Buy Netflix shares: Conclusions
As a group, Netflix is inevitably a name that is taking part of – almost – anyone’s life. Therefore, even those who have never thought about any investments, are aware of the fame of this asset.
Considering the trend with much potential and many growth possibilities, the choice to buy Netflix shares could be a good idea.
Analysts also insist on the dissemination of Netflix shares linked to the presence of original content, essential for the company’s growth.
Of course, we specify that no investment is ever 100% safe, but it is also true that online trading has become more accessible to everyone.
For this reason, using platforms such as eToro and its Copy Trading service, gives the opportunity to make concrete profits from an asset like Netflix.
Among other things, you don’t even need large capital: With eToro, it is possible to start with just 250 euros. In practice, you can do online trading with small amounts. Sometimes beginners are led to think that it takes a lot of money to start investing in the stock market, but this is absolutely not the case.
The answer is easy: Through the best brokers that offer CFDs investment, without any commission.
This company has been the protagonist of one of the biggest stock market rides in the last ten years. Its stock has exploded by more than 300% and growth margins are still wide.
Yes, through CFD brokers such as eToro or ForexTB: Secure platforms that do not charge any fixed fees for users.
Its birth dates back to 1997, in Scotts Valley in California.
According to the available data, the turnover for 2019 was $ 20 billion.