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Netflix (NFLX) is a subscription-based video streaming platform and production company. Members can watch acquired, licensed or originally produced content without commercials in exchange for a monthly fee. Netflix was founded in 1997 and its headquarters are in California, USA.
How to buy shares in Netflix
- Compare share trading platforms. To buy shares in a company listed in the US from Australia you'll need to find a trading platform that offers access to US stock markets. Look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, which will typically include your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Netflix. Find the share by name or ticker symbol: NFLX. Research its history to confirm it's a solid investment that matches your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Netflix reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying using consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$889.55, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Netflix, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Netflix. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights.
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 the split, the next day you would own 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.
Use the fields above to explore the returns from a historical investment. Please refer to the charts further up this page to see performance over 5 years, or other periods. Past performance doesn't indicate future results. Capital is at risk.
Netflix price performance over time
Historical closes compared with the last close of $889.55
| 1 week (2024-12-12) | -3.89% |
|---|---|
| 1 month (2024-11-19) | 2.09% |
| 3 months (2024-09-19) | 26.30% |
| 6 months (2024-06-18) | 29.73% |
| 1 year (2023-12-19) | 79.70% |
|---|---|
| 2 years (2022-12-19) | 208.55% |
| 3 years (2021-12-17) | 51.61% |
| 5 years (2019-12-19) | 167.76% |
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The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.
Is it a good time to buy Netflix stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. 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.
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 50x. In other words, Netflix shares trade at around 50x 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.
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 1.8189. 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
Netflix's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$10 billion (£7.9 billion).
The EBITDA is a measure of a Netflix's overall financial performance and is widely used to measure stock profitability.
Netflix share price volatility
Over the last 12 months, Netflix's shares have ranged in value from as little as US$461.86 up to US$941.75. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Netflix's is 1.25. 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 financials
| Revenue TTM | US$37.6 billion |
|---|---|
| Operating margin TTM | 29.61% |
| Gross profit TTM | US$12.4 billion |
| Return on assets TTM | 11.84% |
| Return on equity TTM | 34.71% |
| Profit margin | 20.7% |
| Book value | 53.153 |
| Market capitalisation | US$380.2 billion |
| EBITDA | US$10 billion |
TTM: trailing 12 months
Netflix share dividends
We're not expecting Netflix to pay a dividend over the next 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.
Environmental, social, and governance (ESG) summary
Netflix Inc was last rated for ESG on: 2019-01-01.
| Total ESG score | 21.55 |
|---|---|
| Total ESG percentile | 19.25 |
| Environmental score | 3.16 |
| Environmental score percentile | 6 |
| Social score | 10.56 |
| Social score percentile | 6 |
| Governance score | 15.32 |
| Governance score percentile | 6 |
| Level of controversy | 2 |
Netflix overview
Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.
Past developments
January 12: On 12 January, NFLX saw a significant increase of 3.9%. This rise has been driven by factors like strong subscriber growth, positive earnings reports and successful new content releases that appealed to investors.
30 December 2022: Glass Onion's Netflix opening weekend viewing figures have been revealed and the Knives Out sequel has proven a mammoth hit. The sequel became the streaming service's most-watched movie in the last week, from 19 to 25 December. From the 23 to 25 December, Glass Onion racked up an impressive 82.14 million viewing hours from Netflix subscribers around the globe.
30 December 2022: Glass Onion's Netflix opening weekend viewing figures have been revealed and the Knives Out sequel has proven a mammoth hit. The sequel became the streaming service's most-watched movie in the last week, from 19 to 25 December. From the 23 to 25 December, Glass Onion racked up an impressive 82.14 million viewing hours from Netflix subscribers around the globe.
Netflix in the news
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