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.
Plus500 is a popular online broker that specializes in CFD trading and hosts over 2,000 financial instruments. One of the main reasons so many UK investors choose to trade shares CFDs on this platform is due to its low fees, with zero commission, no banking fees and very tight spreads.
Trading with this broker takes place on Plus500's own proprietary platform, which is well designed and very user-friendly. It also offers share price alerts, which you can receive via the Plus500 mobile app, meaning you can easily keep track of Netflix's share price.
Plus500 is a very secure and reputable platform, as it's licensed by the FCA and its parent company is on the London Stock Exchange. It also has a fairly low minimum deposit of just £100 which you can make via a variety of payment methods, including e-wallets like PayPal.
Our Rating80.5%% of retail investor accounts lose money when trading CFDs with this provider. Sponsored ad
The share brokers featured so far on this list only offer trading and investing through their own proprietary platforms, but that’s not the case with FXCM. While this broker does offer it’s own user-friendly platform, it also supports MetaTrader 4, Ninja Trader and ZuluTrade.
This means you have plenty of choice when it comes to the tools you use in your trading. You can use trading bots on MetaTrader, test out your strategies with backtesting on Ninja Trader, and even use copy trading on ZuluTrade.
While FXCM doesn’t offer as many shares as other platforms, you can still buy and sell Netflix CFDs. On a more positive note, there’s no commission to pay and the spreads the very competitive. There are also plenty of educational and research resources available to help inform your trading.
Our RatingThere is no guarantee you will make money with this provider. Sponsored ad
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.
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.
Is there a Netflix share price prediction?There are dozens of tier-one predictions on the future of Netflix shares, with the vast bulk of commentators reaching a consensus that growth looks set to continue in the short-to-medium term.
What are the fees when buying Netflix shares?This depends on the broker you buy them from.
Does Netflix pay dividends?No, Netflix does not pay dividends. Although the firm has been trading on the stock exchange since 2002, it is not yet in a position to distribute profits back to shareholders. Instead, the firm is reinvesting its revenues so that it can keep on growing.
What is the minimum amount I can invest in Netflix shares?If you are using a traditional stockbroker, you will likely need to meet a minimum investment of at least £500.
What stock exchange is Netflix listed on?Netflix shares are listed on the NASDAQ Exchange in New York, so make sure your chosen broker gives you access to this particular marketplace.
What is the all-time high for Netflix shares?Netflix is in and around all-time high territory as this article is being written in June 2020. To date, this stands at $458.97.
How many subscribers does Netflix have?'As per its most recent report in April 2020, Netflix boasts a whopping 182 million subscribers.
Can I short Netflix shares?In order to short Netflix shares you will need to use a broker that supports CFDs. To name a few, this includes the likes of Plus500, and FinmaxFX.
When was Netflix founded?Netflix was founded in 1997.
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