How to start trading Netflix stocks with Capital.com?

To start trading Netflix stocks with Capital.com, Open Capital.com CFD Account and log in to the Capital.com Official Website.

Then you need to make a deposit to your account before starting trading Netflix stocks.

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What is Netflix?

Netflix, the official translation of ” Netflix “, another translation of ” Netflix “, is an American Internet TV media distribution service provider. The company was founded in 1997 and is headquartered in California. The company has three operating departments: domestic streaming media (in the United States), international streaming media and domestic DVD. Subscribers can directly use computers, mobile devices, or networked screen projection devices to watch original videos, documentaries, movies and TV shows. As of December 31, 2016, Netflix has subscribers in more than 190 countries and regions around the world.

Netflix (NFLX) shares are listed and traded on the Nasdaq Stock Exchange, and you can trade between 09:30 -16:00 (EST).

Netflix is ​​a constituent stock of the Nasdaq 100, S&P 100 and 500 indexes.

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How to trade Netflix (NFLX) CFDs?

There are two ways for individual traders (retail investors) to participate in stock market transactions. The first is to purchase company stocks directly on the exchange where the stock is listed. For example, you can buy Netflix (NFLX) stock on the Nasdaq exchange, and the purchase means that you actually own the company’s equity. This is a long-term investment because investors usually hold positions for a long time and wait for the stock price to rise.

Another trading method is to use CFDs to trade stocks, speculating on price differences without actually owning them. A contract for difference is a financial instrument. It is an agreement between a broker and an investor. One party agrees to pay the other party the difference between the opening and closing positions of an asset when the agreement expires. You can choose to take a long position (speculate that the price will rise) or short (speculate that the price will fall). This is a short-term investment or transaction, because CFDs are an alternative to stock trading and usually hold positions for a short period of time.

The biggest difference between long positions (contracts for difference trading) and direct purchases of securities (listed exchanges) is the leverage used. CFDs are margin trading, which means that traders can use limited funds to open larger positions.

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Netflix history

Netflix was co-founded in California in 1997 by Marc Randolph and Reed Hastings. In July 1999, the company raised a total of 30 million US dollars in venture capital. In September of the same year, it launched the concept of monthly DVD subscription. Compared with other companies, Netflix’s stock price history is relatively short. On May 29, 2002, five years after the company was founded, Netflix launched an initial public offering (IPO), selling 5.5 million shares at a price of 15 US dollars per share (after the stock splitting price was 1.07 US dollars), raising funds of 8,250 Ten thousand U.S. dollars.

In January 2007, Netflix announced the launch of video streaming. One month later, the company released the billionth DVD, and began to transform from the original core business model (mailed DVD) to online video on demand. In 2011, Netflix promoted streaming media services all over the world, and at the end of the year it successfully developed a large number of subscribers in northern regions, Central America and South America.

The promotion of Netflix in Europe began in January 2012, initially in the UK and Ireland. In February 2013, Netflix launched its first original content-the TV series “House of Cards” (House of Cards), which greatly increased Netflix’s market share.

At the end of 2017, a study in the United States showed that the number of Netflix domestic subscribers in the U.S. is equal to the number of cable subscribers in the country-73% of all U.S. households.

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What are Netflix’s competitors?

One of Netflix’s biggest competitors is Amazon. Because Amazon is not only an e-commerce giant, but also one of several major video delivery service providers. Its service “Prime” provides a series of exclusive programs for subscribers.

Hulu Plus is also an American video streaming service company and another important competitor to Netflix. The company was originally jointly owned by 21st Century Fox (FOX) and Walt Disney Company (DIS). After Fox was acquired, Disney naturally became the largest shareholder of Hulu Plus.

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What factors affect Netflix’s stock price?

As with all stocks, before starting to trade Netflix (NFLX) stock, the two key indicators that traders first consider are the company’s quarterly financial reports and major market conditions.

The number of potential subscribers of Netflix is ​​also one of the factors affecting the value of the stock. For traders, subscription volume is an important reference indicator because it directly reflects the company’s future development. From the historical quotations of the Netflix stock, we can see some laws. The rapid growth in the number of subscribers may stimulate the stock price to rise sharply; on the contrary, the flat or declining number of subscribers will cause the stock price to fall.

Another key indicator that affects Netflix’s stock price is the company’s regional market expansion plan. Observing the subscription growth rate of Netflix’s target markets (such as India and South Korea) can provide an important reference for judging the company’s performance.

In addition, the company’s outstanding performance is also one of the factors that affect the stock price. When Netflix outperforms other companies in the broadcasting industry or achieves unexpected success, its stock price rises accordingly.

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