Is It Profitable To Buy Netflix Shares?

Everyone dreams to have a money plant (that grows money), but this seems pretty in our dreams only. If this could happen, everyone would have planted such trees in their homes. Anyways, come back to reality, the real world also gives you an opportunity to grow your money. Investing in stocks and shares brings profitable opportunities to increase income. Over the past two decades, Netflix has been one of the best-performing growth companies with rising stocks and shares. It also has the advantageous position of being the world’s top video streaming service.

If you also want to invest in the rising stocks of Netflix and increase your passive income, then it’s a great chance for you to read out the information below and learn how to invest in Netflix shares.

A Brief Intro To Netflix

Netflix – A very renowned video streaming company that has a large subscriber base. In reality, Netflix invented streaming video and revolutionised how people watch movies, TV shows, and lectures at home. The corporation was established in 1997 and became public in 2002. In 2007, the video streaming service was introduced. Prior to then, Netflix was a DVD rental and mail-order company. Netflix has had an innovative culture from its inception. Customers have to pay a monthly charge for unlimited DVD rentals.

Step-by-step tutorial To Buy Netflix Shares On Capital.com

Step 1: Select a Stock Broker

If you wish to invest in worldwide corporations such as Netflix, the first step is to choose a stockbroker. When selecting a broker, you should evaluate the variety of trading instruments offered, the platform’s security, and the trading fees you will be paid. Netflix trades on the NASDAQ exchange in the United States, therefore you’ll have to engage with a stockbroker who has NASDAQ shares. We researched all of the leading brokers and suggest the two brokers listed below for purchasing Netflix shares or CFDs in South Africa.

Capital.com

Capital.com is our ultimate top stock trading platform in South Africa. It allows the trading of CFDs and other stocks. There is no functional difference between possessing shares and CFDs on shares in terms of trading. The thing is that  CFDs enable you to employ up to 5 times leverage on shares.

If you’re curious about how to acquire Netflix shares in South Africa with leverage, Capital.com is a fantastic place to start. Capital.com offers a diverse selection of equities, ETFs, currencies, cryptocurrencies, commodities, and indexes. Crypto traders will discover one of the most diverse selections of digital currencies available for trading as CFDs. Trades are also executed without commission, and the platform is well renowned for its affordable spreads.

The minimum investment required for South African consumers is only $20, which is around R300. Capital.com is governed by the FCA in the United Kingdom and CySec in Cyprus.

Step 2: Find Netflix Shares

Two decades ago, Netflix started buying and selling shares at a cost of $1.21 per share. It reached its peak at $593 in January of this year. This is a profit of almost 45,000 %. It is worth emphasising that in order to attain these incredible returns, investors would have had to tolerate significant volatility during the previous 19 years. Nonetheless, the returns are among the finest that an investor could have hoped for during the last 20 years.

As the market considers the next move, the share price has ranged between $470 and $590 during the previous ten months. Netflix was so profitable in 2020 that it set a lofty goal for expansion in 2021. However, as the market returns to normal, the price should continue to rise again.

Step 3: Open an Account

On the official website of Capital.com, locate the ‘signup’ option. You have to fill in the necessary details in the fields given such as email id, and a password. You will then be taken screen where you must provide some further information about yourself. You will then be sent an email and an SMS to confirm your email address and mobile phone number.

You must authenticate your identity by submitting a copy of an authorized CNIC card before funding your Capital.com account. In addition, you must verify your residence by sending a scanned copy of the electricity bill or any utility bill. Once you upload the required documents, the Capital.com staff will authenticate your account in a couple of minutes.

Step 4: Deposit Funds

Before you may invest, you must first transfer funds into your account. The required initial investment is $20, which is approximately R300. You have various options to fund your accounts e.g. a credit/debit card, or bank transfer.

Step 5: Buy Shares

To purchase Netflix shares, search Netflix shares in the search bar.   When you discover it, click the ‘Buy’ button to be taken to an order input page. You may indicate either a cash amount or enter the number of shares you want to buy. Then click ‘Open Trade,’ and your order will be carried out. You can now enjoy becoming a shareholder of Netflix, and you understand how to purchase Netflix shares in South Africa.

Is It Profitable To Buy Netflix Shares?

You should have a fair concept of how to acquire Netflix shares in South Africa by now. Before you buy shares, you should think about whether Netflix shares are a wise investment or not. This may be considered in terms of value and profitability, as well as the challenging market and growth.

The stock is presently selling at a price/earnings multiple of 61, with a PE multiple of 47 based on projected earnings for the next year.

The current value is significantly lesser than in the past even if profit growth is predicted to be cheaper in the future than it was previously.

It’s also worth mentioning that Netflix just finally achieved decent income. As a result, more income will flow to the bottom line in the future. As a result, even if earnings growth slows, profitability might climb relatively quickly.

Netflix Faces A Challenging Environment

Disney+ is a streaming media platform that was introduced in 2019. Disney has a significant edge in that it already possesses a massive amount of information, allowing it to compete on pricing while still turning a profit. There was a lot of anxiety at the time that Disney might steal subscribers from Netflix.

In truth, Disney+ and Netflix can both survive. They provide various sorts of material, and their membership pricing makes it reasonable for many homes to subscribe to both. Disney+ increased rapidly in its first year of operation, reaching 100 million subscribers. Netflix has likewise increased pricing while expanding subscriber numbers, indicating a competitive edge. There are other rival streaming services, but none of them has the budget to acquire and develop enough material to present a risk to Netflix.

Growth

Netflix’s growth is now dependent on global markets. The economy class is growing substantially in developing countries, implying that Netflix is selling into a burgeoning market. The company may strive to increase at the same rate it has in the previous decade, but there is still a lot of potential for consistent development.

There is also conjecture that Netflix may launch games on its platform. This would provide the corporation with a new market for expansion.

Conclusion

We hope that you now have a better understanding of Netflix stock and why you would need to invest in this video streaming company. You may simply invest in other shares and types of assets now that you understand how to acquire Netflix shares in South Africa.

To acquire Netflix shares in South Africa, Capital.com is the ideal broker to go with. It gives you a broad range of assets such as stocks, shares, commodities, forex, and CFDs to select from and invest. The bid-ask spreads are likewise quite tight. Capital.com is one of the major and most prominent CFD brokers, according to our extensive research.