Netflix - A Report Brought to You by Q8 Trade
A brief overview of Netflix and its investment importance
Netflix is an American media company that has contributed many innovations over the years. Founded on August 29, 1997 by Red Hastings and Mark Randolph in Silicon Valley, California, Netflix is a live streaming service for watching videos in all categories on-demand by paying monthly fees.
In 1998, Netflix began receiving requests for access to DVDs through the Internet, where customers were able to rent them for a week, after which they were able to pay a monthly fee to be able to rent an unlimited number of DVDs.
In 1999, Netflix began offering a subscription service through the Internet, where subscribers select movie titles from the Netflix website from the Internet. Of movie titles in their catalog.
In 2002, Netflix was considered one of the most successful web projects, with nearly 190,000 CDs being sent daily to 670 billion million subscribers per month.
In 2006, the number of participants reached nearly 5.6 million, Netflix launched a competition with its own $ 1 million prize to see if anyone could improve its system recommendations by 10 per cent. Three years later, the award was awarded to Pragmatic Chow, a team of seven mathematicians, computer scientists and engineers from the United States, Canada and Austria.
In 2007, Netflix began providing subscribers with the option of streaming some of their movies and TV programs directly to their homes over the Internet. Netflix collaborated with manufacturers of various consumer electronics products, including video game consoles and Blu-ray players, to enable streaming of private videos. Through the Internet connection to those devices.
In 2010, Netflix introduced an unlimited streaming plan that did not contain DVDs, and Netflix subsequently expanded outside the United States by offering a live streaming plan in Canada in 2010, in the Caribbean and Latin America in 2011, and in the UK Ireland and Scandinavia in 2012.
By 2011, the broadcasting service was available in more than 190 countries and regions, and Netflix announced in September 2011 that it would split broadcast and postal services, but the decision was abandoned a month later.
Starting in 2013, the company introduced video content specially produced for the live streaming service.This content became a major focus of Netflix, and by the end of 2018 it provided about 1,000 original titles.
As of October 2016, Netflix supported 18 languages to serve subscribers, including Arabic, English, Chinese, Japanese, Dutch, French, Italian, Portuguese, Korean, and Spanish.
At the end of 2017, Netflix attracted a large number of new subscribers, and the harvest period began to invest outside the United States, despite significant competition in the streaming video service sector.
These record results helped raise Netflix’s value on Wall Street by more than 10 percent.
By the end of 2017, the US group had approximately 117 million users, 6.36 million of whom were outside the United States.
In October 2018, Netflix announced the number of subscribers increased to 137 million worldwide, of which 58 million were in the United States alone.
Netflix allows broadcast service video on demand for subscribers where broadcast TV series and movies through site Netflix on computers PC personal or through the application of Netflix is available on many operating systems, such as smart phones, tablet devices, and video players , games, TVs and smart, and devices Play games.
Netflix started offering its shares for the first time on May 29, 2002. The company sold 5.5 million shares at $ 15 per share. On June 14, Netflix sold an additional 825,000 shares at the same price. Netflix shares are traded on NASDAQ. Under the symbol NFLX, trading is from Monday to Friday from 13: 00-19: 19 London time.
Netflix’s share price in 2010 increased by an estimated 219 percent to US $ 175.70, the number of subscribers rose to more than 8 million new subscribers, bringing the total number of subscribers to 20 million, profits rose to 2.16 billion dollars, an increase of 29 percent, and net Profits to $ 161 million, an estimated 39 percent.
Shares of Netflix
In May 2002, trading began at $ 15 per share, with a market capitalization of $ 300 million, and closed on the first day at $ 16.75.
Shortly after the IPO in October 2002, Netflix fell to an all-time low of $ 4.85.
On February 12, 2004, Netflix was split 1 to 2, and on 15 July 2015 the second split was 7 to 1.
In the same month of 2004, Netflix resumed the upward trend, exceeding $ 74 per share, when the company implemented its first stock split plan.
Did you know? Netflix was an excellent performer during the 2008 global financial crisis.
In the third quarter of 2011 Netflix shares reached its peak, then in September 2012 began to downward.
The stock continued its upward trend, reaching in the middle of 2015 to the level of $ 700, and this was when the company implemented the second stock split plan.
In 2018, the stock hit an all-time high of $ 423.
Factors affecting Netflix shares
Legislative and tax changes
After US hegemony, there has been an international expansion of Netflix’s growth strategy.
However, Netflix makes vulnerable to any legislative and tax changes, which would affect net profit.
With the international expansion of Netflix, it has to deal with government censorship in various jurisdictions, inconsistent taxes that are likely to have a significant impact on their prices and hence their profits.
Breakthrough new markets
In order to effectively trade Netflix shares, it is necessary to track the company’s news of its own expansions or lack thereof.
Investors are still waiting for Netflix’s expansion as it has not yet entered the Chinese market, although it is a major market.
Periodic earnings reports
Netflix reports quarterly earnings for the fiscal year from January to December, giving investors the opportunity to keep an eye on the company’s business.
How is Netflix’s stock price determined?
Netflix initially focused on doubling the number of subscribers in the global video market, avoiding high profits and cash flows to maximize this growth.
Netflix is spending US $ 8 billion on content costs this year, much of it being spent on original content.The goal is to achieve a 50/50 balance, up from 25 percent in 2017.
A brief overview of Netflix’s share price history
During the 17 years since Netflix began trading, stocks have been able to grow efficiently.
Since the beginning of Netflix’s entry into the financial market, the value of the share price has not exceeded one dollar.
In 2010 the turning point was, as the share price began to rise from $ 8.829 to 25.1 at the end of the year.
From 2002 to this year, the highest price was $ 418.97, an increase of 42.6 percent
During the period from the beginning of 2018 to the end of 2019, the highest price reached 385.03, which is 31.1 percent higher than the value of the current Netflix share.
In the previous year and a half, the lowest price was $ 233.88, which is 20.4 percent lower than the current share value. The average share price is $ 336.02.
Is Netflix trading profitable?
There are many reasons why people buy Netflix shares:
- Netflix offers its subscribers all that is new, offers content that they like, and always innovates.
- There is a very large segment of people worldwide who want to subscribe to the Netflix network.
- The company is currently studying a new phone app, in which case nearly 3 billion smartphones will be running Netflix content.
- The company always conducts surveys of its customers around the world to find out their opinions, find out about the negatives and improve them.
- The potential for Netflix is huge, with 60 million subscribers in the USA and more than 80 million subscribers globally.
Referring to Netflix’s earnings during the previous four years:
2019: Stocks this year reached $ 2.55 with an annual increase of 16.44 percent.
2018: Compared to 2017 earnings, Netflix earnings reached $ 2.68, up 1114.4 percent.
2017: Netflix was $ 1.25, up nearly $ 190 from 2016.
2016: Netflix earnings were $ 0.43, up $ 53.57 from the previous year.
Netflix trading via CFDs
CFDs are a financial instrument that enables traders and investors to trade on stocks or commodities, without having the trader or investor owning the same basic financial instrument. CFDs are the price of the underlying asset.
There are simple steps to trading CFDs:
Choosing an asset for trading: The trader identifies an asset that may be an index, stock, commodity, etc. and then put it up by a broker as a CFD.
Opening the position: The trader will open the position and determine the type of the position, whether buying or selling.
Leverage selection: By specifying the type of leverage and the amount to be invested, and adjusting all existing criteria based on what has been agreed with the broker.
Opening a position: It will continue to be open, as it is determined by the same person who makes the trade, or the automatic closing will be based on what was specified at the time of the trading contract.
Closing the position and taking profit: In case of closing the position on the trader, the trader receives the profit from the broker.
Advantages of CFD trading
- CFD trading allows access to equity instruments, and online CFD brokers give you easy access to all financial markets worldwide.
- Through the CFD markets, fees and commissions are easily taken from your profits, so that brokers generate revenue by making the traders pay the spread.
- In CFD trading you can trade at any time throughout the day. Trading is not required only during the day as in the stock and bond exchange.
- CFDs involve a wide range of instruments that can be traded, but under certain conditions depending on the broker or bank through which they are traded.
- Trading CFDs can make profits even in the case of falling prices, not just rising.
How to buy Netflix shares
The following steps can be followed from buying the stock:
- Create a trading brokerage account through a trusted broker.
- Select the amount of investment you want.
- Enter the amount you will invest in your trading account.
- Keep an eye on prices and sales periods and choose the right time to buy.
Why should you trade Netflix CFDs with Q8 Trade?
- Q8 Trade provides leverage to increase the value of your trading capital.
- You’ll have the opportunity to trade Netflix shares through CFDs as this ensures gain even if there is a decline in prices.
- It offers you the possibility of trading Netflix shares without any fees or stamp through CFDs because you do not actually own the stock.
- It provides many tools that you can use in improving your trading outcome such as real-time prices, historical and live charts, fundamental technical analysis and others useful information related to Netflix’s stock which can have an impact on its value.