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How to buy Netflix shares | $485.64
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With social distancing policies in place due to the coronavirus pandemic, Netflix has become one of the remaining sources of entertainment left for millions of people around the world. Investors looking to find value in the stock market may see the current situation as a good time to buy shares in Netflix. Netflix, Inc (NASDAQ: NFLX) is an American media production and streaming company based in California. It is available in over 190 countries, and has over 150 million subscribers worldwide.
How to buy shares in Netflix
- Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
- Open your account. You'll need your ID, bank details and national insurance number.
- Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
- Search the platform for stock code: NFLX in this case.
- Research Netflix shares. The platform should provide the latest information available.
- Buy your Netflix shares. It's that simple.
What's in this guide?
- Can I buy shares in Netflix?
- Netflix shares summary
- Compare share dealing platforms
- Is Netflix stock a buy or sell?
- Netflix performance over time
- Can I short Netflix shares?
- 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
How has Coronavirus impacted Netflix's share price?
Since the stock market crash in March caused by coronavirus, Netflix's share price has had significant positive movement.
Its last market close was $485.64, which is 21.74% up on its pre-crash value of $380.07 and 67.32% up on the lowest point reached during the March crash when the shares fell as low as $290.25.
If you had bought $1,000 worth of Netflix shares at the start of February 2020, those shares would have been worth $1,005.15 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $1,354.94.
Netflix share price
Use our graph to track the performance of NFLX stocks over time.Netflix shares at a glance
Information last updated 2020-07-01.
| Open | $454 |
|---|---|
| High | $488.23 |
| Low | $454 |
| Close | $485.64 |
| Previous close | $455.04 |
| Change | $30.6 |
| Change % | 6.725% |
| Volume | 9,540,330 |
Information last updated 2020-06-25.
| 52-week range | $252.28 - $474.01 |
|---|---|
| 50-day moving average | $434.5866 |
| 200-day moving average | $379.0785 |
| Wall St. target price | $455.46 |
| PE ratio | 94.7449 |
| Dividend yield | N/A (0%) |
| Earnings per share (TTM) | $4.941 |
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Capital is at risk.
Is it a good time to buy Netflix stock?
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Capital is at risk.
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
Historical closes compared with the last close of $485.64
| 1 week (2020-06-25) | 4.23% |
|---|---|
| 1 month (2020-06-02) | 13.65% |
| 3 months (2020-04-02) | 31.23% |
| 6 months (2020-01-02) | 47.25% |
| 1 year (2019-07-02) | 29.36% |
|---|---|
| 2 years (2018-07-02) | 21.96% |
| 3 years (2017-06-30) | 225.04% |
| 5 years (2015-07-02) | -26.23% |
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 95x. In other words, Netflix shares trade at around 95x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
However, Netflix's P/E ratio is best considered in relation to those of others within the entertainment industry or those of similar companies.
- The Walt Disney Company (DIS.US): 49.93
- Amazon-com (AMZN.US): 129.66
- ITV (ITV.LSE): 6.61
- Comcast Corporation (CMCSA.US): 15.25
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 3.1087. 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.
However, it's sensible to consider Netflix's PEG ratio in relation to those of similar companies.
- The Walt Disney Company (DIS.US): 6.25
- Amazon-com (AMZN.US): 2.92
- ITV (ITV.LSE): 0.90
- Comcast Corporation (CMCSA.US): 1.38
Netflix's EBITDA
Netflix's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $3.2 billion (£2.6 billion).
The EBITDA is a measure of a Netflix's overall financial performance and is widely used to measure a its profitability.
To put Netflix's EBITDA into context you can compare it against that of similar companies.
- The Walt Disney Company (DIS.US): $14.5 billion
- Amazon-com (AMZN.US): $36.3 billion
- ITV (ITV.LSE): $708 million
- Comcast Corporation (CMCSA.US): $33.7 billion
Netflix financials
| Revenue TTM | $21.4 billion |
|---|---|
| Operating margin TTM | 14.5% |
| Gross profit TTM | $7.7 billion |
| Return on assets TTM | 6.23% |
| Return on equity TTM | 31.63% |
| Profit margin | 10.43% |
| Book value | $19.122 |
| Market capitalisation | $201.4 billion |
TTM: trailing 12 months
Shorting Netflix shares
There are currently 11.3 million Netflix shares held short by investors – that's known as Netflix's "short interest". This figure is 3.5% down from 11.7 million last month.
There are a few different ways that this level of interest in shorting Netflix shares can be evaluated.
Netflix's "short interest ratio" (SIR)
Netflix's "short interest ratio" (SIR) is the quantity of Netflix shares currently shorted divided by the average quantity of Netflix shares traded daily (recently around 6.1 million). Netflix's SIR currently stands at 1.87. In other words for every 100,000 Netflix shares traded daily on the market, roughly 1870 shares are currently held short.
To gain some more context, you can compare Netflix's short interest ratio against those of similar companies.
- The Walt Disney Company (DIS.US): 1.26
- Amazon-com (AMZN.US): 0.81
- Comcast Corporation (CMCSA.US): 3.51
However Netflix's short interest can also be evaluated against the total number of Netflix shares, or, against the total number of tradable Netflix shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Netflix's short interest could be expressed as 0.03% of the outstanding shares (for every 100,000 Netflix shares in existence, roughly 30 shares are currently held short) or 0.0263% of the tradable shares (for every 100,000 tradable Netflix shares, roughly 26 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Netflix.
Find out more about how you can short Netflix stock.
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: 20.47
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Netflix's overall score of 20.47 (as at 03/01/2020) is excellent – landing it in it in the 18th 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.).
To gain some more context, you can compare Netflix's total ESG risk score against those of similar companies.
- The Walt Disney Company (DIS.US): 19.07
- Amazon-com (AMZN.US): 34.07
- ITV (ITV.LSE): 10.08
- Comcast Corporation (CMCSA.US): 21.15
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: 11.54/100
Netflix's social score of 11.54 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: 13.26/100
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.
Wondering how that compares? Below are the controversy scores of similar companies.
- The Walt Disney Company (DIS.US): 2
- Amazon-com (AMZN.US): 3
- ITV (ITV.LSE): 1
- Comcast Corporation (CMCSA.US): 2
Environmental, social, and governance (ESG) summary
Netflix, Inc was last rated for ESG on: 2020-03-01.
| Total ESG score | 20.47 |
|---|---|
| Total ESG percentile | 18.12 |
| Environmental score | 3.16 |
| Environmental score percentile | 6 |
| Social score | 11.54 |
| Social score percentile | 6 |
| Governance score | 13.26 |
| Governance score percentile | 6 |
| Level of controversy | 2 |
Netflix share dividends
We're not expecting Netflix to pay a dividend over the next 12 months. However, you can browse other dividend-paying shares in our guide.
You may also wish to consider:
- ITV (ITV.LSE) (14.7% forward annual dividend yield)
- Comcast Corporation (CMCSA.US) (2.35% forward annual dividend yield)
Have Netflix's shares ever split?
Netflix's shares were split on a 7:1 basis on 15 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 $252.28 up to $474.01. 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 0.9586. This would suggest that Netflix's shares are less volatile than average (for this exchange).
To put Netflix's beta into context you can compare it against those of similar companies.
- The Walt Disney Company (DIS.US): 1.1136
- Amazon-com (AMZN.US): 1.3155
- ITV (ITV.LSE): 1.4908
- Comcast Corporation (CMCSA.US): 0.9801
Netflix overview
Netflix, Inc. provides subscription streaming entertainment service. It offers TV series, documentaries, and feature films across various genres and languages. The company provides members the ability to receive streaming content through a host of Internet-connected screens, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services. The company has approximately 167 million paid members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.
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