Sammie Ellard-King
I’m Sammie, a money expert and business owner passionate about helping you take control of your wallet. My mission with Up the Gains is to create a safe space to help improve your finances, cut your costs and make you feel good while doing it.
For those interested in how to buy Netflix Shares you’ve come to the right place.
The entertainment industry giant has seen incredible growth and formed part of the famous acronym FAANG which was synonymous with the rise in tech stocks over the past decade.
In this guide, we’ll show you how to buy Netflix shares in the UK with introductions to the best platforms, opinions on whether to buy Netflix stock and the current market price.
- Important Notice
When you invest the value of your shares can go up or down. If you are unsure about your investment decision you should always seek investment advice. Past performance is not a future indicator and always do your own research.
Where to Buy Netflix Stock?
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How To Buy Netflix Shares - Quick Guide
To buy Netflix shares, you’ll first need to set in motion the process of establishing a trading account.Â
Ensure that your personal identification, National Insurance number, banking details, and proof of residence are at hand for this stage.
Next, you will need to define your payment methods. This typically involves a direct bank transfer or using a debit card to populate your newly formed trading account with funds.
Now, your next step is to locate the shares of Netflix Inc. on your trading platform. This can be achieved by using the Netflix Inc. stock symbol, which is “NFLX”.
Be sure to delve deep into the particulars of Netflix Inc. shares. Your trading platform should offer you all the most recent information about these shares.
Finally, when you’re satisfied and at ease with all the details, you can go ahead and buy Netflix shares. Just like that, you’ve become a shareholder of Netflix!
Netflix Live share price
The stock price will change at points during the day so be sure to check the Netflix share price again before you purchase any stocks.
Are Netflix Shares Overvalued or Undervalued?
Netflix stock has had a bumpy ride over the past 12-18 months. Falling 75% from its all-time highs in 2021 the stock has bounced back in 2023 with a 48.5% rise since the start of the year.
Many analysts currently think Netflix is overvalued and sight slowing sign-up growth as a key factor here.Â
Other factors include the extremely high business costs Netflix has to continually produce content for the platform as a negative factor.
Margins within this business are tight and the stock market needs to see some bigger growth numbers to justify the current pricing of Netflix shares.
As you can see the current sentiment is to sell Netflix stock rather than buy it.Â
If you do believe in the company long term and want to gain some exposure to the entertainment industry then perhaps waiting for a better entry would be worthwhile.
Should I buy Netflix Shares?
On July 20, following the release of its second-quarter figures, the share price of the streaming video giant fell by 8%.
The company reported a 2.7% annual increase in its revenue, reaching $8.19 billion, though it fell short of analysts’ projections by $100 million.
Meanwhile, the net profit witnessed a 3% growth, amounting to $1.49 billion or $3.29 per share, surpassing the anticipated forecast by $0.44.
Netflix’s operating margins are improving due to factors like stabilised revenue growth and a growing advertising business, with its margin reaching 22.3% in the second quarter.
However, its increased free cash flow forecast is linked to the WGA and SAG-AFTRA strikes halting new content production, which, while potentially driving more viewers to streaming services, could leave Netflix lacking new content and facing higher costs if the strikes result in new payment agreements.
Source: The Motley Fool
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Buying Netflix Shares Through A Broker: A Step-by-Step Guide
Select an Appropriate Brokerage
Your path to purchasing Netflix Inc. shares begins with the selection of a reliable broker. It’s important to note that not all brokers offer share purchases for every company listed on various exchanges, and Netflix Inc. is listed on the NASDAQ (NASDAQ:NFLX).
Digital trading platforms like eToro and Hargreaves Lansdown are popular choices owing to their user-friendly interfaces and wide array of listed stocks, including those on the NASDAQ.
Establish an Account
Once you’ve picked a broker, the following step is to set up an account.Â
This process generally involves providing some personal details, such as your address, ID or National Insurance number, and employment information. It’s a relatively straightforward procedure, akin to opening a standard bank account.
Ensure to read the terms and conditions thoroughly to understand the services and fees associated with the account.
Fill out the W-8BEN form
If you’re an investor from the UK, it’s essential to fill out the W-8BEN form. This enables you to benefit from a lower withholding tax rate for income originating from the US, like potential dividends from Netflix stock.Â
It’s worth mentioning that Netflix hasn’t distributed dividends in the past, and currently, there’s no update on their plans regarding future dividends.
Inject Funds Into Your Account
After setting up your account, the next move is to deposit funds into your account.Â
This funding enables you to purchase shares. This is typically done via a bank transfer, though some brokerages may also accept cheques or wire transfers.
The period it takes for the funds to reflect in your account can vary, hence it’s wise to plan ahead if you’re looking to seize a particular investment opportunity.
Analyse the Company
Prior to buying shares in Netflix Inc., or any company for that matter, it’s vital to carry out exhaustive research. Assess the company’s financial health, recent performance, and business dealings.
Data about Netflix Inc.’s financial reports and other investor-related information can be located on their official website.Â
You can also sift through market analyses and expert opinions to acquire knowledge about the potential of the company’s shares.
Decide Your Investment Amount
Finally, determine the sum you’re willing to invest. Keep in mind that investing in shares always carries a risk, and it’s crucial not to invest more than you can afford to lose.
When deciding your investment amount, consider your financial goals, risk tolerance, and the current price of Netflix Inc. shares.
For those new to investing, it might be prudent to start with a modest amount and gradually increase your investment as you become more comfortable with the process.
Netflix Shares Information
Does Netflix pay dividends?
No Netflix stock does not currently pay dividends at this time. This is not expected to change in the new future as the company focuses on their growth.
What Should I Consider Before I Buy Netflix Shares?
Before putting money into Netflix shares, it’s vital to thoroughly examine a myriad of factors.Â
Netflix’s dominant position in the streaming market and its varied content offerings make it a compelling choice, especially as it has shown resilience amidst market fluctuations.
However, the growing competition in the streaming sector, a recent dip in its share price, potential changes in subscriber growth rates, and pronounced stock volatility are areas of concern.Â
On a brighter note, Netflix’s current valuation may be seen as a potentially enticing entry point for investors bullish on its long-term trajectory, especially with the impending launch of their new advertising system.
Always ensure that these factors align with your individual investment objectives, risk comfort, and financial circumstances.
How To Sell Netflix Shares?
Selling your shares in Netflix, Inc. is as straightforward as buying them. Here’s a simple walkthrough to guide you:
Access your investment account: This is the same account you employed when purchasing your Netflix, Inc. shares. If you don’t currently have one, you’ll need to set up an account with a brokerage firm that facilitates the trading of global stocks.
Find your shares: After signing in, navigate to the page detailing your portfolio, where you should see all your held shares. Your Netflix, Inc. shares should be listed there, identified by the ticker symbol ‘NFLX’.
Select ‘Sell’: You should see a ‘sell’ option next to your Netflix, Inc. shares. Activate this option with a click.
Decide on the quantity to sell: At this point, you need to specify the number of shares you wish to sell. This could vary from offloading a small portion of your shares to selling your entire stake.
Set your shares’ price: This step is not mandatory. If you decide to specify a price (known as a ‘limit order’), your broker will only execute the sale when your shares reach this value. Choosing a ‘market order’ means your shares will be sold at the existing market rate.
Confirm the sale: When you are pleased with all the details, confirm the sale. Your broker will then execute the order on your behalf.
Please remember that the exact process may differ slightly depending on the brokerage platform you’ve chosen.Â
And always consider the transaction fees that may be charged by your broker when selling shares.
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FAQs
Is it profitable to invest in Netflix?
Over the long term if you purchased Netflix shares in 2011 you would have seen a 3900% increase. Netflix has performed extremely well over the long term and that was due to the boom in streaming services.
With competition on the rise plus having such a large user base it’s going to be harder for Netflix to continue their growth.Â
That being said there is huge growth to be had in markets outside the US and if they can realise this then Netflix shares could perform well over the long term.
Personally, I would be looking for a dip in the price and then hold for the longer term.
Who has the most shares in Netflix?
88.49% of Netflix (NASDAQ: NFLX) shares are held by institutional investors, while 6.72% are owned by insiders of Netflix, and the remaining 4.79% is in the hands of retail shareholders.
Rick Kimball stands as the top individual shareholder of Netflix with 8.01M shares, which equates to 1.81% of the corporation.
Why is it good to invest in Netflix stock?
As the streaming leader owning Netflix provides you exposure to one of the top-performing entertainment businesses in the world.Â
The company’s past performance since its IPO is nothing sort of extraordinary and it is considered to be one of the biggest tech stocks around.
That being said, its growth has slowed in recent years and Netflix will have to keep posting good growth numbers to see a continued rise in the stock market.
Where is Netflix based?
Netflix is based in California USA and their address is 100 Winchester Circle, Los Gatos, CA, United States, 95032
Can you buy Netflix shares with a debit card?
Yes, most UK trading platforms will allow you to pay via a debit card. However, it is important to check directly with your provider to see what payment types they accept.
What's the easiest way to buy Netflix Shares?
The easiest way to buy Netflix stock is via fractional share investing with a provider like eToro.
You can also very easily invest in Netflix via an exchange traded fund (ETF) or US focused index fund.
Both of these can be found in your brokerage account.
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Disclaimer: Content on this page is for informational purposes and does not constitute financial advice. Always do your own research before making a financially related decision.
