Netflix Stock: Is It A Buy Right Now? Here’s What NFLX Stock Chart Shows Investor’s Business Daily

The writers have been on strike for more than four months, with the screen actors joining the writers on strike on July 14. Though Netflix’s library can provide some degree of protection from a short-lived strike, content creation is paramount to Netflix’s success. Without a healthy original content pipeline, it could struggle to grow and retain paying members. Meta generated more than 98% of its second-quarter revenue from advertising, and businesses tend to quickly pare back their ad spending at the first signs of trouble. In other words, fears about a weakening U.S. economy, or an actual weakening of U.S. gross domestic product, could really hit Meta’s topline and bottom-line growth over the short run.

If you’re looking to get your hands on Netflix stock today, we cover the basics of the stock and the best stock brokers in the market. It’s a good choice for swing traders that don’t want to watch charts 24/7. If you bought Netflix at $200 with a price target of $210, you set the stop limit, and https://1investing.in/ the broker sells your holdings when the price reaches your target. When you’re deciding on how much of your balance to allocate to trade, you’ll need a quick lesson in risk management. Professional day traders de-risk by investing no more than 5% of their total account balance in one stock.

How to buy Netflix stock on Stash

Netflix is valued at almost $200 billion as of July 12, 2023, which puts the price-to-earnings ratio based on 2022 figures at about 45. The S&P 500 trades at a P/E ratio of around 25, so Netflix stock is priced at a hefty premium. This valuation implies that investors are betting that Netflix can rapidly grow earnings over the next few years, something that is far from a guarantee. With that volatility in mind, you may want to consider investing in index funds or exchange-traded funds (ETFs) rather than individual stocks. These funds invest in hundreds or even thousands of companies at once, giving you a ready-made, diversified portfolio.

For the full year, analysts expect Netflix’s revenue to rise 12% as its EPS drops 1%. Its operating margin is expected to drop 90 basis points to 20%. In a positive sign, NFLX stock has found support at its 50-day moving average line. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. Meanwhile, Netflix is facing competition from traditional media companies. Comcast (CMCSA)-owned NBCUniversal followed in July 2020 with Peacock.

Registering an account with the broker is relatively easy and straightforward. You will also be able to fund your account with a range of payments, which includes debit/credit cards, e-wallets like Paypal and Skrill, and a local bank transfer. Netflix is the dominant player in the ever-growing content streaming industry. This order type is more of a risk management tool to limit your loss.

Step 2: Fund your trading account

Although Netflix has about $6 billion of cash and short-term investments on hand, it also has considerable debt. Long-term debt totaled $14.4 billion at the end of 2022, on which the company paid $706 million in interest. Potential Netflix investors also need to consider the valuation.

Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days. Netflix is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade. This refers to the upper-most price level that a difference between entrepreneurs and managers particular stock or any other security reaches but doesn’t exceed due to dwindling number of buyers and an increasing number of sellers. Also referred to as the offer or asking price, this refers to the lowest price that the seller will take for a stock. A stock is said to be oversold if it is consistently traded below its true value.

Over the last 12 months, Netflix’s shares have ranged in value from as little as $211.73 up to $485. Investing directly in individual stocks will, hopefully, be a profitable experience. It may also qualify you for shareholder perks specific to the company in question. Doing this gives you the opportunity to review performance and ask if any adjustments to your holdings are required – to maintain the status quo, buy more stock, or sell existing shares. There are several steps to take once you’ve satisfied yourself about the reasons for buying shares in a particular company. Here’s what you need to know about buying – and selling – Netflix shares.

Is Netflix Stock a Buy Now?

The investment process does not end as soon as you’ve got the stock in your portfolio. Indeed, you must continue to monitor your investment and its performance in the market. You will only owe capital gains on the growth of your investment on your Canadian income tax, as long as the company in question doesn’t have U.S. real estate as their main asset. With Canadian capital gains, you will only pay 50% of the growth value of the investment. If you have multiple investment accounts with different brokers, you can use an investment portfolio app to manage all of your accounts in one place.

However, analysts commonly use some key metrics to help gauge the value of a stock. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. As a large company, many funds can give you exposure to Netflix.

This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence or obtain advice where necessary. This website is free for you to use but we may receive a commission from the companies we feature on this site. Moving Averages is a statistical calculation that is specially designed to identify the arithmetic mean of a given number of data sets or range of prices calculated over a given period of time. Each of these data set or price range is created by the average/mean price for that subset. For instance, a single data point on a moving averages scale may represent the average stock price for a day or trading session.

ETFs with exposure to Netflix

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 47x. In other words, Netflix shares trade at around 47x recent earnings. While Netflix hasn’t announced any additional stock splits, it’s certainly possible the company could announce a third stock split down the road. Shares of Netflix traded above $400 in mid-2013, making them less accessible for investors with small amounts of money to invest. One way for investors to invest in Netflix stock with less risk is to buy an exchange-traded fund (ETF) that holds shares of Netflix.

In July of that year, with its stock price at $686.91, Netflix announced a seven-for-one stock split. In the two days following the split, Netflix shares would continue to climb another $20 to $117.88. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

It comprises a hypothetical portfolio of different companies whose change in prices is calculated to determine market performance. A bull market is an economic condition where the stock markets are in an extended period of consistent increase in stock prices. While eToro is our top pick for those of you that wish to hold on to your Netflix stocks long-term, some of you might prefer to engage in shorter-term trading. The online CFD broker has an excellent reputation in the online trading space, and its parent company is listed on the London Stock Exchange.

• These are also referred to as micro-cap or nano-cap stocks and refers to the stocks of relatively small companies valued less than $5 and only trade via the Over-The-Counter markets.
• Long-term debt totaled $14.4 billion at the end of 2022, on which the company paid $706 million in interest.
• You pay commission for both transactions, but save on the conversion fees.
• A bull market is an economic condition where the stock markets are in an extended period of consistent increase in stock prices.

ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. Netflix (NFLX) is one of the stocks most watched by Zacks.com visitors lately. A blue chip refers to a nationally recognized and financially sound company with a long and stable record of consistent growth.

This strategy prevents you from putting all your buying power in a single transaction that could go wrong. Remember, there’s a chance that you could lose on your investment, so don’t put in any more than you can afford to lose. Make sure you understand and practice the principles of risk management when funding your account and placing trades. Netflix’s ongoing international expansion will also likely exacerbate that pressure, since its subscriptions are much cheaper in many overseas markets.

It also offers a broad set of activities for leisure time, entertainment video, video gaming, and other sources of entertainment. It operates through the United States and International geographic segments. The company was founded by Marc Randolph and Wilmot Reed Hastings on August 29, 1997 and is headquartered in Los Gatos, CA.

Finder monitors and updates our site to ensure that what we’re sharing is clear, honest and current. Our information is based on independent research and may differ from what you see from a financial institution or service provider. When comparing offers or services, verify relevant information with the institution or provider’s site. 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.

This refers to the highest closing price recorded by a given stock in the last 52 weeks. EToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation. That outlook seems mediocre, but I believe it merely implies that Netflix’s business is maturing instead of falling off a cliff. Netflix’s operating margins also rose to unusually high levels throughout 2020 and most of 2021 as the COVID-19 restrictions temporarily disrupted its production and licensing of new shows and movies. It has formed a cup-with-handle base with a buy point of 349.90, MarketSmith charts show. Recent buzzworthy shows on Netflix include TV series “Wednesday,” “The Night Agent” and “The Diplomat.” Popular new original movies include “Don’t Look Up,” “Red Notice” and “Glass Onion.”