Investing in Netflix in 2023 - How to Start?

Eva Blanco Garzón
8 Min read

There are two ways to invest in Netflix: directly purchasing shares or speculating on price movement using CFDs. Currently, its share price has plummeted due to subscriber losses... could this be a good time to consider investing in Netflix at a lower price? 

Netflix (NASDAQ: NFLX) is one of the few technology companies that has been able to rebuild itself since the Internet bubble burst in the early 2000s. The streaming platform's business has grown rapidly since then, not only in terms of revenue but also in terms of stock market value. 

However, as the most recent figures have shown, Netflix shares have plummeted on the stock market, raising the following questions: why has its share price dropped? And how can you keep an eye on it? 

Netflix's stock market evolution  

Netflix was founded in 1997, just before the Internet bubble burst, at a critical juncture in history. Netflix's activities were initially focused on DVD rentals, a competitive sector that suffered from household behavior that had not yet become accustomed to consuming content online. 

Due to financial difficulties in its early years, Netflix approached Blockbuster Video and offered the video rental company a stake in the company. After the proposal was rejected, Netflix decided to go public in 2002 (under stock exchange symbol NFLX) in order to increase market liquidity. 

The US company began developing its video-on-demand rental service for computers, game consoles, and mobile devices (smartphones and tablets) in addition to television by raising funds. 

Netflix's share price had increased by more than 400% in the last five years, reaching $700 in November 2021, its all-time high at the time. However, the share price has dropped by more than 67% between then and the end of August, 2022. 

Many people would question whether Netflix is worth investing in at such a high price. However, has this fall created a new investment opportunity? 

How to Invest in Netflix Stock  

There are two ways to buy Netflix stock: in cash or through CFDs. There are 2 accounts for this: 

Trade.MT5: for CFD trading on Netflix. This allows you to profit from the stock's up and down movements; in theory, you can short the Netflix share if you anticipate a price drop and potentially profit from it. Remember that there is some risk involved. 

Invest.MT5: You can buy Netflix stock on the spot. 

Click on the following to download MetaTrader 5 and start trading today:

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How to Purchase Netflix Stock on Admirals  

To buy and sell Netflix stock, follow these steps: 

  1. Create a trading account
  2. Log in to MetaTrader 5
  3. Right Click your mouse in the Market Watch tab. 
  4. Navigate to Symbols and enter Netflix into the search bar. Select the Netflix title and then on Show Symbol button. 
  5. Right-click on the Netflix stock, then select New Order, and finally Buy or Sell. 

Simply follow these five simple steps to position yourself to purchase Netflix! Trade upwards with the Invest.MT5 account to buy Netflix stock for cash, or trade downwards with the Trade.MT5 account to short Netflix stock CFDs. 

You can also click on the banner below to register now for a risk free demo account:

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Netflix Stock Performance in 2022 

Earnings announcements have a major impact on share prices. 

In this particular case, Netflix announced its results for the third quarter of 2022 in October. What was the data? 

  • Higher than expected revenues: $7.93 billion, compared to $7.84 billion expected. 
  • EPS: 3.1 instead of 2.14 expected. 
  • Subscribers: increase of 2.41 million subscribers. 

These positive results have been reflected in the stock market, where Netflix shares have resumed their upward trend, though they are still far from the peak reached in 2021. 

Dividends paid out by Netflix per share 

Dividends are not paid to Netflix shareholders. This decision was understandable at the time of the initial public offering, as it was a company in the early stages of development that had encountered difficulties before entering the markets in 2010. 

However, Netflix is no longer a start-up, and its meteoric rise in stock market prices since 2010 makes the non-payment of dividends difficult to justify.  

Technical Analysis 

Source: Admirals MetaTrader 5 Supreme Edition - Netflix weekly chart - Data range: 3 December 2017 to 12 January 2023. Prepared on 12 January 2023 - Please note that past performance is not a guide to future performance. 

Netflix's share price was in a long-term uptrend until November 2021, as shown in the chart. Since then, Netflix shares have plummeted, particularly after the presentation of the 2021 results, which were then amplified by the Q1 2022 results (big loss of subscribers and lower-than-expected profits). 

After breaking the long-term green uptrend line, the price fell until it reached a resistance zone in the past. However, Netflix shares have since entered a bullish trend as a result of the company's Q2 and Q3 2022 results. 

This has created an excellent opportunity to consider investing in Netflix stock at a lower cost. 

According to Netflix's technical analysis, the price could be as follows in January 2023: 

Continue to rise within the trend until it reaches the $380 resistance line. 

If it breaks the channel in a downward direction, it may return to the previous support level. 

As a result, before purchasing Netflix stock, it is critical to understand what is going on with the company, as reports such as earnings reports can have a significant impact on the price. 

You can invest in Netflix shares for the long term with the expectation of growth, or you can trade Netflix CFDs to trade price fluctuations (up and down). 

If you are interested in discovering the latest trading trends, get actionable strategies and enjoy complimentary tools, join our Advanced Trading Webinars at the click of a button:

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Discover the latest trading trends, get actionable strategies and enjoy complimentary tools.

 

Frequently Asked Questions:

How can I invest in Netflix without risk? 

Select a regulated broker. You can verify this by inspecting the license number.

What is the best way to trade Netflix? 

Create an account in your Trader's Room to trade Netflix, which is the same procedure as described in the article. It applies to residents of the majority of countries. 

How much does it cost to purchase Netflix stock? 

The commission on Netflix shares at Admirals is $0.02, with a minimum commission of $1. Add the share price at the time of purchase and multiply by the number of shares desired. Commissions are available through current promotions. 

What is the value of Netflix stock? 

Netflix stock is trading at the time of writing at around $326. You can find out its current price here

You can also save money by purchasing fractional shares of Netflix. 

Other articles that you might be interested in: 

About Admirals 

We are a global broker regulated by the most stringent financial authorities. We give you access to the most cutting-edge trading platforms. We deal in CFDs, stocks, and ETFs. 

Good trading! 

INFORMATION ABOUT ANALYTICAL MATERIALS:

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets and Admirals trademarks (hereinafter “Admirals”). Before making any investment decisions please pay close attention to the following:
1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
4. The Analysis is prepared by an independent analyst (hereinafter “Author”) based on the NAME +(Position) personal estimations.
5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.

 

 

 

 

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