In a few simple steps, you can invest in Netflix, one of the giant names in the entertainment industry. Find out what you need to know before buying Netflix shares.
If you’ve seen productions such as Of House of Cards ”, Is Orange Is the New Black”, anger Stranger Things ”or“ Hakan: Guard ”, you know how powerful Netflix (NASDAQ: NFLX) can be. Does the company’s stock, like their productions, have the power to multiply your money?
Of course, the brave investors who invested in Netflix years ago are not upset about their investments. Netflix went public in 2002 and traded at an average of $ 1.20, and the company’s share price is currently trading at $ 350. Extraordinary growth!
Should this extraordinary growth and pleasant hours spent with Netflix mean you should buy Netflix stocks? Start reading to find out.
1.Start Searching Netflix
It can be hard to keep track of and know everything in a field that moves as fast as the online entertainment industry with Netflix. Because new technologies, new products and new competitors can emerge at any moment.
Netflix, which continues its activities by spreading to many countries, has a very advantageous position in terms of geography compared to its competitors. However, Netflix has huge competitors, such as Amazon Video, Hulu, Disney or Youtube TV, which are unclear when and when.
You need to evaluate these competitors with North American markets. Because these companies still earn most of their earnings from their own homes. We can also add the European market to North America.
If you are going to be a Netflix investor, you should follow the sector in every way closely. For example, vel Luke Cage “,“ Iron Fist ”,“ Daredevil ”and“ The Punisher Mar will soon be released by Marvel’s Netflix productions. The reason for this is that Disney, who owns Marvel, will build its own platform. Think about how competition will increase in this case.
Of course, Disney or other competitors who plan to shoot Marvel-signed productions, which have a large audience, are not going to take Netflix to the ground in a snap. Netflix has already started to create a line of defense by preparing its own originals. Meanwhile, Netflix won five Golden Globes with original content at the beginning of the year. Bird Box, one of the company’s newest originals, was watched by 45 million subscribers in the first few weeks.
Never underestimate the pace of change and great competition in this sector.
Do your research to see the competitive risks that Netflix is or may be facing. Also make sure you understand these risks. Read the company’s latest earnings reports. Keep track of what analysts are evaluating about the company and the industry. For more tips, see our guide on how to search for shares.
Researching a company thoroughly before investing helps you see risks and makes the right decisions. If you feel that Netflix shares will be the right decision after you complete your investigation, read on.
2.Review Your Financial Goals
Even if all the indicators of a company are tremendous and the share price will rise to guarantee, this may not be a suitable investment for you. For example, you may have invested enough in high-growth (and potentially high-risk) technology stocks, and you may not want to invest more in this sector.
Or maybe the money you’re considering investing in depends on another place. For example, you may be considering buying a house in a few years. As a matter of fact, you don’t want to invest this money in a high-risk technology stock.
Another factor is time. Will you need the money to buy Netflix shares in five years or less? If that’s the case, it wouldn’t make sense to put your money in the stock market. You will not have enough time to save your money in case of a possible market fall.
The best step in making the right investment decision starts with knowing your financial situation and goals. Therefore, be aware of your financial situation and set your goals precisely. See risks and make sure you have a diversified portfolio to mitigate them. Also, do not make the mistake of putting eggs in a single basket.
If you understand that you need at least five years to get your money back on the stock exchange, and you believe that investing in Netflix fits your overall financial plan, then read on.
3.Open a Stock Investment Account from an Intermediary
Netflix’s shares are traded on the Nasdaq stock exchange in the USA. This means that in order to purchase Netflix shares, you need to open a stock account from a brokerage house that allows you to trade on foreign stock exchanges. If you already have a broker account, you can skip to the next step.
If you don’t have an account, it’s easy to open an account. There are many brokerage firms that provide the ability to trade in foreign markets in Turkey. You can see some of them from our list of intermediary institutions for foreign share transactions.
By reviewing brokerage houses, you can pay attention to account opening lower limit, commission rates and customer support, so you can make the best choice for your needs.
If you have also opened your account, you can now start purchasing Netflix shares.
4.Start Buying Netflix Stocks
You are about to buy Netflix shares and become a partner in the company. On the last level, you have to answer the following question: What kind of order do you want to use?
To continue to buy Netflix shares individually, you must decide what type of order you will use. Yes, when we say order, we mean the types of orders. Two of the most common species are the “market” order and the “limit” order.
Let’s open up a little.
With a market order, you can buy stocks as soon as possible. The final price with a market order may be slightly higher or lower than the price you see when placing orders. The ease of purchasing shares in the shortest time and at the best possible price is the best advantage of this type of order.
With a limit order, you can buy the stock only at a certain price. You set this price yourself. For example, if the share price is $ 350, you can place orders for $ 345. When the share price reaches the price you set, purchase is required. Otherwise, no reception is performed.
Open your investment account, decide how many stocks you want to buy and place the purchase order you want to use. That’s it.
If you have any other questions or something is still confusing, you can take a look at our detailed guide on how to buy foreign stocks from overseas stock exchanges. This process is usually the same.
Let’s make a small note.
Purchasing individual stocks from Netflix can be a bit salty. Currently, the average price of the company’s stock is 350 dollars and this corresponds to approximately 1850 pounds. This price does not include commissions and other fees. If one or more Netflix shares will be a challenge for you, technology stock funds, including Netflix, can help you save money.
Thanks to the technology stock funds, Netflix and major technology company shares can simultaneously do. In addition, these funds give you both cost and diversification advantages. To do this, you do not need to have an intermediary account that allows you to trade in foreign markets, you can buy funds directly from your bank, for example.
5.Keep Track of Your Investment
We’re finally done. I mean, at least we searched Netflix, got to know his rivals, find out what happened, and take care of getting stock. But things don’t end here. You need to continue to monitor your investment.
Watch a few episodes of series or movies from Netflix today. After all, you are a partner in this company. In the following days, start taking every important development about the company on your radar. Follow analyst opinions. Don’t forget to read earnings reports every quarter. At some point, it may be time to sell.