How To Buy Netflix Stock

How To Buy Netflix Stock: Netflix pioneered the streaming video phenomenon, and for better or for worse, it has been credited with causing the decline of traditional network and cable television.

Competitors have scrambled to launch their own competing services, but until recently, none were considered true contenders in the battle for streaming video market share.

Investors are watching Disney carefully, because it is one of the few companies that pose a real threat to Netflix profits.

In addition to near-total ownership of Hulu and ESPN+ streaming services, Disney recently launched Disney+ – an all-Disney, all the time streaming option.

From November 2019 to February 2020, Disney+ enrolled 28.6 million subscribers. When combined with Hulu’s 30.7 million and ESPN’s s 7.6 million, Disney’s power appears formidable – even when you consider that this doesn’t count unique subscribers, as some individuals have all three services.

Despite Disney’s gains, investors continue to put their money into Netflix for one simple reason: Netflix has proven again and again that it knows how to deliver the content its customers want.

It’s true that Disney’s entry into the streaming service marketplace might have subdued Netflix’s ability to attract new US subscribers, but most analysts believe the situation is temporary. After all, Netflix is far and away the global leader in streaming services, with a total customer base of 167 million paying subscribers.

Of those 167 million, just 60 million are from the United States, which demonstrates that demand for Netflix stretches beyond the US border.

Though the company missed its target for new US subscribers in the fourth quarter of 2019 – perhaps due to Disney+ – it made up for the deficit by exceeding expectations for new international subscribers.

Is Netflix Stock a Buy?

Netflix is known for its ability to collect and analyze massive amounts of user data, and it is this data that supports the company’s ability to attract and retain customers in highly specific niches.

In addition, Netflix builds its strategy on user habits, investing billions in original content that will appeal to large swaths of viewers.

Consider the popularity of these series, found exclusively on Netflix:

  • Stranger Things
  • Orange is the New Black 
  • Mindhunter 
  • Unbreakable Kimmy Schmidt
  • Master of None
  • Dear White People

That says nothing of feature films like Birdbox, All the Bright Places, and The Last Thing He Wanted. Netflix is willing to invest in top-quality content, attracting talent like Ben Affleck,  Anne Hathaway, Rosie Perez, and Adam Sandler.

Perhaps more importantly, Netflix isn’t pinning its entire future on the United States market. In its fourth quarter 2019 report, Netflix announced that it exceeded expectations for growing its international client base by adding 8.3 million new users.

Outside of the United States, Disney+ is only available in Australia, the Netherlands, and New Zealand, though it is planning to roll out services to more countries at the end of March. How the service is received internationally will play a major role in the escalating streaming wars.

Finally, there is every reason to believe that Netflix will continue on its growth trajectory, because it offers the most advanced technology available. Users agree that the Netflix experience is vastly superior to that of alternative services. The combination of technology, content, and global reach makes Netflix a buy.

What To Know Before Buying Netflix

The new coronavirus pandemic has sparked economic turbulence, but most analysts agree that Netflix remains a safer-than-average choice for many portfolios.

Though there might be drops in Netflix share prices in line with the larger market downturn, Netflix doesn’t face excessive risk from the economic impact of the virus.

After all, social distancing means more people at home, where Netflix offers a welcome distraction from the outside world. That means Netflix subscriptions are more likely to grow than drop before the health crisis is resolved.

Open a Brokerage Account

If you are ready to design your own investment portfolio, the first step is to open a brokerage account. You have a number of high-quality options that allow you to open and manage your account online.

Many even waive minimum balance requirements and commission fees, as your trades are entirely self-directed. You can collect all of the information you need to choose your trades through web-based research, removing the need to consult with a costly investment advisor.

Buying Netflix shares as part of your long-term wealth-building strategy is simply through platforms like tastyworks, which focus on creating a high-quality user experience.

You can also try more sophisticated transactions like generating options income by selling covered calls through these services. Note that while you won’t pay commission fees, clearing fees still apply.

Place a Buy Netflix Stock Order

Funding your new brokerage account can be accomplished right online. You simply connect an account from another financial institution and transfer funds. Once those funds are available, you are ready to trade. All you have to do is enter the company name or symbol and select the number of shares you want.

You may be asked to choose from different types of purchase orders. The two most common are market orders and limit orders. Market orders instruct the brokerage to buy shares as soon as administratively possible, regardless of the change in share price since the order was placed.

Limit orders, on the other hand, offer a bit more protection in a highly volatile market. You list the maximum price you are willing to pay, and if share prices increase beyond that amount, the order is not filled.

This is a particularly interesting time to start your investment portfolio, as recent declines in the market have made many stocks more affordable than they have been in years. Buy now, then hold. When the market eventually recovers, you are likely to see the value of your portfolio grow effortlessly.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.