How to Buy Netflix Shares UK in 2022 – A Beginner’s Guide

Although Netflix is an American company listed on the NASDAQ stock exchange, buying its shares from the UK couldn’t be easier. In fact, you simply need to find an FCA-regulated broker that gives you access to international shares, instantly deposit some funds with your debit/credit card, and then choose how many shares you wish to buy. So, do you want to buy Netflix shares?

In this guide, we show you how to buy Netflix shares in the UK. We also provide some background information on Netflix shares and review the popular stockbrokers that you can invest with today.

Where to Buy Netflix Shares?

As you may well know, you will need to use a trusted share dealing platform if you wish to invest in shares. Furthermore, and perhaps most pertinently, the broker must give you access to the NASDAQ, as this is where Netflix shares are hosted. Once you’ve crossed-off the fundamentals, you then need to look at a range of other metrics. This includes everything from fees and commissions, supported payment methods, and of course, FCA regulation.

You should also consider whether you want to buy shares in the traditional sense of buy and sell shares contacts for difference (CFD). By trading CFDs, you won’t actually own any shares, but you can go short (speculate on the share price going down) and apply leverage (borrow capital to make larger trades).

With hundreds of such providers now active in the UK space, finding a share broker for you isn’t always easy.  To help you out, below you will find a selection of popular stock brokers that allow you to buy Netflix shares.

Why People May Buy Netflix Shares

Despite the wider market downturn caused by the COVID-19 pandemic, Netflix shares have been on a winning streak. In fact, the lockdown has not only encouraged people to revisit their subscriptions, but Netflix has since added a significant amount of new members.  The company’s first-quarter earnings reveal an addition of 16 million global subscribers, reaching nearly 183 million to close the quarter. 

Below we discuss some of the reasons why you might want to add Netflix to your shares portfolio.

Streaming Industry has Never Been Stronger

Netflix operates in one of the few industries that stood to benefit from stay-at-home lockdown orders. Although its work-in-progress productions and movies had to be temporarily suspended, Netflix already had a number of new releases lined up.

Most pertinently, the provider already has a significant library of existing content to attract new customers at affordable prices.  The company also has the capacity to continue working on its animation projects remotely and has been able to continue the post-production of shows that have already been recorded.

In essence, COVID-19 did result in Netflix facing large-scale disruption to its services. This has shielded Netflix from any substantial economic fallout in the last few months. Not many firms can claim such a feat.

Growth in International Subscriptions

In its latest letter to shareholders, the management team at Netflix indicated that more than half of its revenue is denominated in currencies other than the US dollar. This sudden wave of new international subscriptions has been a huge source of revenue growth for Netflix. Netflix is also expanding its markets to new regions.

Since its aggressive international marketing campaign began in early 2016, the number of global subscribers has shot up to 112.8 million in just over four years.  Even in the past 12 months alone, Netflix has seen a year-on-year growth of international subscriptions by 107%.

Second Quarter Remains Positive

Though countries have begun to relax their lockdown restrictions, several businesses still remain closed or only performing limited operations. Moreover, consumers will likely need more time to feel truly comfortable in going out and mingle in crowded places. This means that people might continue to spend more time indoors and rely on streaming services for entertainment. 

According to analysts at BofA, there could be even more sign-ups in the second quarter of 2020, as Netflix recognizes users are paid subscribers only after complying with their trial periods. In April’s first-quarter report, the company laid out an expected number of 7.5 million net member additions. This is substantially higher than last year’s figure of 2.7 million.

Netflix Continues to Evolve

The ultra-fast growth of Netflix is also evident in its ever-increasing free cash flow (FCF) levels. Some analysts feel that Netflix will soon attain FCF profitability and will be able to self-fund content. As a result, the company will become less reliant on the capital markets and, ultimately, begin reducing its debt levels. 

For investors, this is one of the most prominent concerns with the streaming company. For example, it was announced in April 2020 that Netflix was planning to facilitate a new debt offering of $1 billion. It is therefore hoped that continued growth in subscription numbers will put Netflix in a better position. 

Netflix is Becoming Renowned for Top-Quality Programming 

Netflix took a near-prime seat in the 2019 Emmy Awards, with its original content coming in at second place behind HBO. While the latter won 34 awards, Netflix obtained an impressive 27. Meanwhile, in the Oscars, Netflix was behind an impressive two wins and 24 nominations.

Crucially, the company is aiming to increase both subscription count and time spent on its service using quality programming. This is where the company sees its growth potential in the long run.

While at the time of writing Netflix makes up just 10% of overall TV hours in the US, with ever-growing FCF and self-funding, the company is shifting from its linear programming model. As some of its original content could potentially stand the test of time for many decades to come, proponents of Netflix would argue that its business model is somewhat recession-proof. 

About Netflix Shares

Netflix offers subscription streaming entertainment services. The platform provides series, feature films, and documentaries across several languages and genres. The company was founded in 1997 as a mail-order movie and TV-show delivery service. 

Netflix went public way back in May 2002. At the time, its price per share was $15,00. By 2004, Netflix announced its first split at 2-for-1 after its shares exceeded the $70-mark. It’s since been up, up, and away for the company, with the Netflix share price surpassing the $700-mark in July 2015.

Netflix immediately announced a staggering 7-for-1 split, following Apple to become the second stock ever to be split in this ratio. Later in 2015,  Netflix shares were trading at a peak of $126. For shareholders, this meant they owned seven times as many shares as they did pre-split, with a record market value of nearly $3,000. 

After hitting a pullback later in the year, Netflix started to pick up the pace in 2017. Crucially, its shares increased just above the $400-mark and have since remained within a trading range between $300-$400. At the time of writing in June 2020 – Netflix shares stand at $447.

Conclusion

Netflix has demonstrated that it knows how to run a successful recurring revenue model. With subscription numbers consistently rising and a reduction of content expenses becoming the norm, you will struggle to find a Wall Street commentator that is bearish on the firm. 

Furthermore, and perhaps most importantly, Netflix was one of the very few companies that not only weathered the coronavirus pandemic storm but inadvertently benefited from it.

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