American multimedia corporation Netflix began its biography on August 29, 1997. The unique competitive advantage of this project is the full cycle of production of entertainment programs and television films, from plot creation and filming, to the release of branded DVDs. Netflix’s shares were first listed on the stock exchange on May 29, 2002 at a price of $ 15 per share. Today, these securities are considered highly liquid promising assets of the S&P 500.
Since 2007, the brand’s multimedia channel has become available to Internet users who have been able to watch their favorite films and TV shows on a computer. This company turned out to be the most resilient during the economic crisis, constantly increasing its own exchange potential in the face of fatal instability of quotations. By 2010, all proprietary content had been adapted for smartphones and tablets. In 2018, the number of subscribers to this channel reached 118 million users from around the world.
By early 2019, Netflix had a stock value of about $ 360 per share. The largest shareholding of this corporation is owned by institutional investors – well-known funds Capital Group Companies, The Vanguard Group, BlackRock. The total capitalization of this flagship multimedia market project is currently $ 184 billion.
The most famous TV series released by Netflix are House of Cards, Orange Is the New Black and a collection of vibrant TV serials based on the famous Marvel comics. Company
Netflix stock exchange characteristics
- MT4 Stock Abbreviation: #NETFLIX
- Trading time: Monday-Friday 13: 00-19: 59 London time (GMT)
- Country: USA
- Currency: USD
- Trading Exchange: NASDAQ
- Leverage: up to 20:1
Individual features of Netflix shares
- No dividends are paid on these securities. On the one hand, an investment in such an asset does not bring constant income. On the other hand, such stocks tend to grow much faster. This indisputable advantage allows us to consider such investments as a long-term profitable investment with relatively low risks.
- These securities can be bought from both foreign and Russian brokers without any restrictions. Free sale and purchase of these assets, which show stable growth from year to year, classifies these shares as the so-called “blue chips”.
The nuances of investing in Netflix stocks in 2020
- The results of 2018 clearly demonstrated the growth of subscribers, profits and the value of shares of this corporation. However, at the same time, the debt obligations of the company grew, which is constantly expanding the directions of its activities. Netflix must pay off an impressive $ 16 billion in debt over the next five years
- The company is still ahead of such giants as Apple, Disney and Amazon in terms of the current online movie industry performance. At the same time, several new large projects are planned for 2019 that can increase profitability and trigger a new wave of subscriptions to channels.
- The well-known analytical exchange operator Cowen predicts a rapid growth in the value of Netflix shares by July 2019, which could reach 62% (about $ 470- $ 490). UBS and Refinitiv are more modest in their forecasts, predicting an increase in value to $ 400- $ 420. In any case, everyone agrees that the securities of this company will grow steadily this year.
- This international corporation is constantly under pressure from the individual characteristics of the legislation and taxation of different countries. At the same time, the company has to invest a lot of money in the creation of new content. Continuous expansion also creates positive prospects for investors. In particular, the planned entry into the Chinese markets could be a powerful impetus for the growth of share prices and increase the overall brand capitalization.
Analysts believe that buying the company’s securities is not the most profitable way to generate income. A more mobile and efficient way is trading using price difference agreements (CFDs).
How to make money on Netflix stocks with CFDs?
- A CFD does not imply the purchase of an exchange-traded asset. In this case, you are entering into an agreement that the stock will either rise or fall in price in a specific period of time. Accordingly, you do not have to spend large sums on the purchase of securities, wasting time on going through the necessary formalities.
- Allow you to use up to 20:1, which significantly increases the financial capabilities of traders working with small deposits.
- Such transactions can be made with a small number of shares (from 10 shares). Moreover, the maximum lot size is not limited.
Trading Netflix stocks on the AvaTrade brokerage offers a wide range of tools for beginners and professional traders. Loyal commission, the fastest withdrawal of funds, a powerful set of options for constant monitoring and strategy implementation – all this provides an opportunity to successfully make profitable transactions with these stable, rapidly growing assets.
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