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How to buy Netflix (NFLX) stocks
Netflix stock has moved 1.53% from yesterday's closing price. Learn how to easily invest in Netflix stock.
- Following yesterday’s earnings report, Netflix stock dropped 35% today. This marks its worst trading day since 2004 and wiped $50 billion of its market cap.
- The quarterly earnings report revealed that Netflix had lost subscribers for the first time in 10 years.
Netflix is an entertainment business based in the US. Netflix stocks (NFLX.US) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was $235.44 – an increase of 6.54% over the previous week. Netflix employs 11,300 staff and has a trailing 12-month revenue of around $31 billion.
How to buy stocks in Netflix
- Compare stock trading platforms. Use our comparison table to help you find a platform that fits you.
- Open your brokerage account. Complete an application with your details.
- Confirm your payment details. Fund your account.
- Research the stock. Find the stock by name or ticker symbol – NFLX – and research it before deciding if it's a good investment for you.
- Purchase now or later. Buy your desired number of stocks with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
- Check in on your investment. Optimize your portfolio by tracking your stock.
What's in this guide?
- Can I buy shares in Netflix?
- Has coronavirus impacted Netflix shares?
- Netflix shares summary
- Compare share dealing platforms
- Is Netflix stock a buy or sell?
- Netflix performance over time
- Is Netflix suitable for ethical investing?
- Are Netflix shares over-valued?
- Netflix's financials
- How volatile are Netflix shares?
- Does Netflix pay a dividend?
- Have Netflix shares ever split?
- Other common questions
Netflix stock price (NASDAQ:NFLX)Use our graph to track the performance of NFLX stocks over time.
Netflix shares at a glance
|Latest market close||$239.04|
|52-week range||$162.71 - $700.99|
|50-day moving average||$228.35|
|200-day moving average||$314.58|
|Wall St. target price||$241.49|
|Dividend yield||$0 (0%)|
|Earnings per share (TTM)||$10.98|
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Note: The dollar amounts in the table below are in Canadian dollars.
Is it a good time to buy Netflix stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Netflix price performance over time
|1 week (2022-09-27)||6.54%|
|1 month (2022-08-31)||N/A|
|3 months (2022-07-01)||32.84%|
|6 months (2022-04-04)||-38.94%|
|1 year (2021-10-04)||-60.38%|
|2 years (2020-10-02)||-52.48%|
|3 years (2019-10-04)||272.79|
|5 years (2017-10-04)||29.60%|
Is Netflix under- or over-valued?
Valuing Netflix stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Netflix's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Netflix's P/E ratio
Netflix's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 21x. In other words, Netflix shares trade at around 21x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Netflix's PEG ratio
Netflix's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.0421. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Netflix's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Netflix's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $6.2 billion.
The EBITDA is a measure of a Netflix's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||$31 billion|
|Operating margin TTM||19.13%|
|Gross profit TTM||$12.4 billion|
|Return on assets TTM||8.5%|
|Return on equity TTM||30.93%|
|Market capitalisation||$100.7 billion|
TTM: trailing 12 months
Netflix's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Netflix.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Netflix's total ESG risk score
Total ESG risk: 21.55
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Netflix's overall score of 21.55 (as at 12/31/2018) is excellent – landing it in it in the 19th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Netflix is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Netflix's environmental score
Environmental score: 3.16/100
Netflix's environmental score of 3.16 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Netflix is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Netflix's social score
Social score: 10.56/100
Netflix's social score of 10.56 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that Netflix is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Netflix's governance score
Governance score: 15.32/100
Netflix's governance score puts it squarely in the 6th percentile of companies rated in the same sector. That could suggest that Netflix is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Netflix's controversy score
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Netflix scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Netflix has, for the most part, managed to keep its nose clean.
Netflix share dividends
We're not expecting Netflix to pay a dividend over the next 12 months.
Have Netflix's shares ever split?
Netflix's shares were split on a 7:1 basis on 14 July 2015. So if you had owned 1 share the day before before the split, the next day you'd have owned 7 shares. This wouldn't directly have changed the overall worth of your Netflix shares – just the quantity. However, indirectly, the new 85.7% lower share price could have impacted the market appetite for Netflix shares which in turn could have impacted Netflix's share price.
Netflix share price volatility
Over the last 12 months, Netflix's shares have ranged in value from as little as $162.71 up to $700.9894. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Netflix's is 1.338. This would suggest that Netflix's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and mobile games across various genres and languages. The company provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services in the United States. The company has approximately 222 million paid members in 190 countries. Netflix, Inc.
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Frequently asked questions
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
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