Netflix Shares: Price, Dividends and Performance
It is not without reason that Netflix stock still attracts many investors at the moment. This stock is indeed an interesting growth stock to hold in a stock portfolio in 2022.
How much can you make with Netflix stock?
Get up-to-date and precise information on Netflix stock with its current price, dividend yield, analysis and our opinion.
This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.
Want to buy shares in Netflix: Our key take-aways
Stock exchange: Nasdaq
- Stock index: Nasdaq 100
- Dividend 2021: $0
- Dividend forecast 2022: $0
- Performance over 1 year: +30.93%
Should I buy Netflix stock?
Netflix remains an interesting and solid growth stock to bet on in 2022 with a long-term strategy.
Indeed, despite the absence of dividend paid by this company, it is possible to consider a capital gain in a few years on this stock. Remember that over the last ten years, this stock has gained more than 2,000% of its value.
Moreover, it is possible that Netflix decides to pay back a part of its profits to its shareholders by paying a dividend.
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How can I buy shares in Netflix ?
To buy Netflix on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add Netflix to your stock portfolio.
How much are Netflix shares?
See price chart below to follow Netflix stock price in real time.
Why Netflix shares could go up:
Netflix's stock price could rise over time due to several elements from its analysis including:
- Flexible business model: the group's business model has evolved significantly over time, moving from DVD rentals to streaming.
- Strong brand equity: the name Netflix has become synonymous with streaming content in popular imagery. It was the first platform that was accepted for this type of business model.
- Continuous investment: The group is also making continuous investments in order to accelerate content acquisition and development with a focus on a seamless user experience.
- Growing customer base: While licensing and distribution rights differ by country, Netflix remains a popular choice among users around the world and the number of subscribers continues to grow year after year.
- Strong international presence: Netflix content is available in more than 190 different countries and more than 80% of new subscriptions come from outside the U.S. and Canada.
- A wide selection of content: the platform is currently a leader in content algorithms and offers a wide selection of recommendations based on past viewership, search history and registered personal preferences of users. Its platform has the largest content library in the industry.
- Original content: In addition, the group invests a lot of money in original content which allows it to offer exclusive offers to its subscribers while reducing licensing costs.
- Affordable price: Finally, what attracts many users who choose to join Netflix subscribers is the affordable price of this platform which is available in several levels depending on the number of screens desired.
Why Netflix shares could go down:
Of course, there are other elements to consider that rather point to a downside risk for Netflix's stock price over the long-term with the following:
- A large distribution of third-party content: the platform mainly markets third-party content and not exclusive material. It therefore has to pay fees to add this content and this spending area is very important. This content is also not exclusive to Netflix and can therefore be found on other platforms.
- A strong exposure to the US market: a large part of Netflix subscribers, more than 37%, are based in the United States. This market still represents nearly half of the group's revenue, which exposes it to the risk of a sectorial crisis.
- Algorithms sometimes criticized: Netflix uses algorithms that are sometimes flawed and do not offer content tailored to user preferences, which has earned it some criticism in the past.
- Poor customer support: Netflix's customer support is almost non-existent, which can also hurt its reputation. The group does not offer real-time technical assistance for customers experiencing problems.
- Rising prices: the group is often criticized for the progressive increase of its rates over the years. A new increase took place in 2021 while other platforms offer quality content at a lower cost.
- Increasing competition: Netflix has to face more and more direct competitors whereas it used to have a monopoly on this market, which limits its growth possibilities.
- No dividend: finally, the fact that the group does not pay any dividend to its shareholders is an element that can slow down the purchase of these shares by investors looking for yield.
Can I buy Netflix stock online?
Yes! You can buy Netflix shares online. For many buyers this is the best way to do it. Here's why:
- The commissions are lower
- You can choose your own investments
- You benefit from analysis and decision support tools
- You can invest in stocks directly or through derivatives like ETFs.
How can I sell my Netflix shares?
If you want to sell Netflix shares that you already own, you can do so through an online broker with a simple sell order.
Short selling will only be possible if you have a margin account and is not allowed in Canada with registered savings vehicles.
However, if you want to speculate on the decline of the stock, you can do so by using derivatives such as options or CFDs.
What investment vehicles in Canada can hold Netflix stock?
Netflix shares can be placed in several different savings vehicles including"
- RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
- TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
- Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
- Cash accounts: This account allows you to trade stocks on North American markets only.
There are two ways to invest in Netflix stock right now.
The first is to buy units of the stock through a stockbroker so that you hold Netflix shares in your portfolio, and the second is to invest more broadly in a basket of stocks in that market index or sector.
This can be done by investing in a mutual fund or ETF.
Netflix share price history over 10 years:
Netflix dividends and payment dates
In 2021, the Netflix group did not pay any dividend to its shareholders.
Since its listing on the stock market, the group has never paid its shareholders.
Since its listing on the stock market, the group has never paid its shareholders. It favours a strategy of reinvesting its profits, particularly in the acquisition of licensing rights and to improve its services in order to accelerate its growth.
Netflix has not announced a dividend for this year 2022 nor for the following years, but it is possible that it will change its distribution policy in the years to come.
What is the dividend yield for Netflix over the last 10 years?
The yield on Netflix shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Good to know
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
Good to know
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about Netflix stock:
A critical analysis of Netflix stock:
Fundamental analysis of the Netflix share shows rather deteriorated signals in the short and medium-term but more reassuring in the long-term:
- High margins: the group shows high margins that reflect the good profitability of its activities.
- High price target: the average price target of analysts is currently quite far from its actual price, which suggests a significant rise in this stock.
- Above-expectation releases: The company generally reports financial results above analysts' expectations with a positive surprise rate.
- High valuation: The group's valuation in terms of earnings multiples is high, with the company being worth 33.42 times its expected net earnings per share for the current year.
- Lowered expectations: In recent months, analysts have repeatedly revised their expectations for Netflix's revenue and earnings downward.
- Significant differences in opinion: Finally, the opinions of analysts working on this issue are not very consistent with each other. This indicates a lack of visibility on the business or difficulties in valuing the company.
A technical analysis of Netflix stock:
The medium to long-term technical analysis signals for Netflix stock are currently mixed with the following indicators:
- The RSI is moving at the 39.465 level, which is returning a moderate sell signal on this stock.
- The short and medium-term stochastics are sending a sell signal and the long-term stochastic is sending an oversold signal.
- The MACD at 6.8 is the only oscillator sending a buy signal on this Netflix stock.
- The MA5, MA10, MA20 and MA50 simple and exponential moving averages are sending a sell signal while the MA100 and MA200 are sending a buy signal.
- The next technical support levels are located at 337.54 and 300.50 and the next resistance levels are at 404.06 and 433.54.
Who is Netflix?
The Netflix Inc group is an American company in the content distribution sector.
Specifically, this company specializes in the provision of online streaming and subscription-based movies and TV series.
Members of the platform pay a monthly fee to access unlimited and on-demand content on different media such as computers, cell phones, TVs or game consoles connected to the Internet.
The group continues to develop a DVD and Blu-Ray mail order rental business.
The Netflix group's revenue break down as follows:
- Streamins subscription revenue represent 99.4% of the company's revenue.
- revenue from DVD and Blu-Ray rentals still generate 0.6% of turnover.
Currently, the Netflix group has more than 221.8 million subscribers.
The geographical distribution of the group's revenue is as follows:
- The United States and Canada for 43.7% of turnover
- Europe, Middle East and Africa for 32.7% of turnover
- Latin America for 12% of revenue
- Asia Pacific for 11% of sales
- The rest of the world for 0.6% of sales
Who are Netflix’s competitors?
The Netflix group is part of an industry that is currently booming and has more and more big players. Here are its main current competitors:
- Apple: the Apple TV software of the Apple group also allows to watch series, movies, short films and documentaries and which is available on the devices of the brand.
- Tencent Video: this Chinese website also offers streaming video and belongs to the Tencent group. It currently has over 900 million monthly active users on mobile and 89 million VIP users.
- Prime Video: this platform, formerly known as Amazon Prime Video, is owned by the online retail giant and is a video on demand service available in many countries. It is the most direct competitor of Netflix.
- Disney+: this website owned by the Disney Group,is an American subscription video-on-demand service that launched in 2019 and offers mostly content produced by The Walt Disney Company, Pixar, Marvel and other franchises.
- HBO Max: This entertainment SVOD service was developed by WarnerMedia, a division of AT&T and has been available in the U.S. since 2020. It relies on WarnerMedia's third-party content providers.
- Dailymotion: this French company offers a service for hosting, sharing and viewing free and paid online videos.
Who are Netflix’s partners?
Of course, the Netflix group can also count on certain allies and regularly sets up strategic partnerships with other companies, of which here are a few examples
- BBC: the BBC has partnered with Netflix in order to develop and fund ambitious fiction by creators and artists with disabilities.
- Sony: Another partnership has recently been established with Sony with the aim of launching Netflix in the video game sector. This partnership would consist of broadcasting Playstation games.
- Take Two Interactive: Still in the video game industry, Netflix has made an agreement with this creative studio to develop the BioShock franchise, which has millions of gamers around the world.
- Mariott Hotels: The Mariott International-owned brand has signed a partnership with Netflix to offer guests at select hotels an app to access the streaming platform's services.
- Spotify: the two companies have partnered to offer a space dedicated to the Netflix soundtrack universe by finding on Spotify the original soundtracks of Netflix programs.
- Samsung Electronics: Finally, Netflix has also partnered with this company for the second season of Emily in Paris. Samsung used the series to showcase its cutting-edge technologies.
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