NETFLIX (NFLX) Stocks
📊 Netflix Inc. is an internet entertainment service that offers series, films and documentaries in different languages and genres. Netflix members can watch online, on any screen that can connect to the internet, without being interrupted by commercials. Members can choose to buy one of three plans and can upgrade or downgrade at any time. While watching, members can pause and resume as pleased.
📊 The company is a member of the Motion Picture Association of America (MPAA) and releases original series and films.
📊 Netflix’s headquarters is in Los Gatos, California. The company has an estimated 148 million members in more than 190 countries, which makes it a leader in its field. Netflix has offices in the Netherlands, Japan, South Korea, India and Brazil.
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OVERVIEW OF NETFLIX
- Netflix is founded by Marc Randolph and Reed Hastings on the 29th of August, 1997. Hastings invests $2.5 million to start the company. Business starts on the 14th of April, 1998. Netflix is the first online DVD rental store in the world.
- The company starts out with 30 employees and 925 DVD titles. In September 1999, Netflix implement monthly subscriptions for an affordable price and in 2000 removes the single-rent option entirely. By now data speed has improved enough to allow the download of movies from the internet.
- The company’s portfolio quickly expands within the next few years with the number of members, as well as the amount of movie titles available. On the 29th of May, 2002, Netflix has its initial public offering. The public buys 5.5 million common stock shares for a price of $15.00 per share. On the 14th of June, the same year, another 825 000 common stock shares are sold for the same amount.
- By 2005 the number of Netflix members grow to 4.2 million. In 2007 the company introduces streaming, allowing members to instantly watch series and movies from their own computers. By 2010 Netflix is available on Apple products and Nintendo Wii. The next couple of years sees the company expanding to numerous other countries and in 2014 Netflix has 50 million members across the globe.
- In 2017 and 2018, the company wins various nominees, including an Oscar for Best Documentary Feature for Icarus as well as 23 accolades for its original series.
VISION & VALUES OF NETFLIX
- Netflix values its customers and its aim is to always offer spectacular entertainment. The company is always improving its content, variety of languages and services and keeping an eye on the ever-changing market.
- Netflix licenses its content to ensure that entertainment is provided across the globe to all cultures.
MARKET PERFORMANCE OF NETFLIX
- Netflix trades on the New York Stock Exchange under the NYSE stock symbol NFLX.
- Netflix analysis for the three months ending the 31st of March, 2019, shows revenue is $4,520,992 and operating income is $459,084.
- Total net income is $344,052. Cash, cash equivalents and restricted cash is $3,370,097. The forecast for 2019 shows an increase in revenue.
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LATEST NEWS NETFLIX
Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy NETFLIX Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN NETFLIX STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE NETFLIX STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of NETFLIX stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy NETFLIX stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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