Last updated: October 8th, 2024
Netflix is famous for bringing at-home entertainment into the future. In the 1990s, it launched a streamlined DVD-by-mail subscription service and its online video-on-demand streaming service in 2007.
As the quintessential streaming service, Netflix is a cultural phenomenon — as evidenced by how ‘Netflix and chill’ has become a common euphemism for relaxing and romancing.
It’s shaped the zeitgeist through popular programs like ‘Stranger Things’, ‘Wednesday’ and ‘Bridgerton’.
To become a Netflix shareholder, learn more about the company’s share price prospects and how to invest from Australia.
Above: Netflix shares surged after the company rolled out an ad-supported tier service tier and cracked down on password sharing. Zoom out for better historical context.
How Has Netflix Stock Performed?
Netflix has a US$280 billion market capitalisation and is among the world’s top 50 largest companies.
It listed on the NASDAQ in 2002 at US$1 per share under the ticker symbol NFLX.
Did You Know?
Old-school video rental company Blockbuster famously rejected an offer to buy Netflix for US$50 million in 2000. Being too late to the streaming party sealed Blockbuster’s fate — it filed for bankruptcy and delisted from the NYSE in 2010.
After a pandemic-driven surge in customers starting in 2020, Netflix’s stock price reached an all-time high of around US$700 in late 2021.
However, the share price dropped considerably in the months that followed, and Netflix’s customer numbers also declined in the first half of 2022.
(Related: Our Pick Of The Best Trading Platforms In Australia).
By early 2023, a better-than-expected increase in subscriber numbers and the transition of the company’s leadership — with co-founder Reed Hastings stepping down as CEO — saw the share price rise 6.1%.
The share price steadily gained and lifted further in January 2024 with investors impressed by the company’s Q4 2023 results.
NFLX shares dipped briefly in April after Netflix’s first-quarter results for 2024 were released.
Despite strong revenue growth, investors didn’t like the company’s announced plans to stop including membership numbers in its quarterly reports in 2025.
Did You Know?
We’ve reviewed 15 of the best share trading apps – many of which allow you to buy Netflix stocks.
Netflix Co-CEO Gregory Peters said the move was due to the fact that varying plan pricing globally obfuscates the business impact of subscribers, meaning:
Important!
At the time of writing Netflix was trading at just over US$650 per share, representing a gain of over 38% year-to-date.
According to TipRanks, the average 12-month target price analysts have for Netflix is US$659.45, with a high of US$800 and a low of US$450.
(Related: How To Buy CBA Shares In Australia?)
Performance Metrics To Know About Netflix [NFLX].
As of June 13, these are some key metrics for the NFLX share price from Nasdaq and Yahoo Finance:
| P/E Ratio | 54.13 |
| PEGY Ratio | 54.04 |
| Return on equity (ROE) | 29.80% |
| Shares Outstanding | 430.9M |
| 30-Day Average Volume | 3,500,058 |
Frequently Asked Questions About Netflix Shares.
Consider these facts before you become a Netflix investor.
1. What Will I Pay In AUD For Netflix Stock?
Each NFLX share is valued at around US$650 (~AU$978) as of June 2024.
Keep in mind that, as an Australian investor, the affordability of shares and the value of your profits when you eventually sell will be influenced by:
- The AUD/USD exchange rate. A strong USD makes buying stock expensive, but boosts returns when selling.
- Currency conversion and brokerage fees available on your trading platform. Higher fees eat into the funds available to invest or withdraw.
(Related: eToro Review: Still The Best Broker In Australia?)
2. What ASX-Listed ETFs Hold Netflix?
A number of popular exchange-traded funds (ETFs) that you can buy through the Australian Securities Exchange (ASX) can provide exposure to NFLX shares, including:
- Betashares NASDAQ 100 ETF (NDQ)
- Global X FANG ETF (FANG)
- Vanguard MSCI Index International Shares ETF (VGS)
- VanEck MSCI International Quality ETF (QUAL)
3. Does Netflix Pay Dividends?
Netflix does not pay dividends, and hasn’t paid dividends since it was publicly listed in 2002.
4. Has Netflix Had A Stock Split?
Netflix has completed two stock splits in its history to encourage investment:
- In 2004, the company had a 2-for-1 stock split.
- In 2015, Netflix conducted a 7-for-1 stock split.
At the time of Netflix’s last stock split it was trading at around US$690 per share.
5. Who Owns Netflix Shares?
More than 85% of Netflix shares are held by institutional investors, which is often seen as a positive sign for a stock’s future prospects.
(Related: Best Investing Podcasts In Australia).
How To Buy Netflix Shares In 4 Steps.
Before you sign up with a share trading platform to purchase NFLX stock, revisit your broader investing plan.
Does owning a slice of Netflix align with your goals, timeframes and risk appetite?
With clarity about how Netflix shares fit within your strategy, you can follow these steps to purchase shares or ETFs using a stockbroking app.
1. Know The Intricacies Of Being A Shareholder In US Companies.
Owning part of US-listed companies can differ from how you hold direct shares in ASX-listed companies.
Many Aussie brokers offer CHESS-sponsored shares, where you legally hold your shares separate to the company, registered via the ASX.
However, brokers that facilitate the sale of US shares do so under a custodial model.
That is, you get all the returns and make all the decisions about your shares, such as when to sell.
A custodial model may provide benefits such as:
- Lower brokerage costs as the company pools your assets with other investors.
- Access to fractional investing, where you can buy fractional amounts of a NFLX share.
Important!
The custodial model is the default in the US, so it’s not inherently risky. But it’s wise to carefully select your broker to minimise the risk of losing your investment if they become insolvent.
Investing in a US-based company like Netflix affects how you pay tax. You’ll need to:
- Pay a 15% US withholding tax on dividends you earn from US shares.
- Pay income tax to the ATO which includes returns from your NFLX shares.
Speak to your accountant about whether you can claim the foreign income tax offset.
2. Choose A Stock Trading Platform That Offers Access To US Markets.
The features, pricing structures and costs of different stock trading apps available to Australian investors vary, so take your time to research and compare products before creating an account.
To invest in Netflix, you’ll want to prioritise an online broker that:
- Covers US markets and the NASDAQ stock exchange where NFLX is listed.
- Offers low-cost foreign currency exchange fees in addition to affordable brokerage costs.
To ensure you’re protected by Australian laws, it’s best to use an ASIC-registered broker.
You can confirm a broker is registered by finding its Australian Financial Services (AFS) Licence number on its website, and verifying the number via ASIC Connect.
(Related: How To Day Trade In Australia).
Setting up an account is straightforward if you’re digitally savvy, but there will be some extra KYC (Know Your Customer) requirements. Get ready to share:
- Your name, personal contact details and date of birth.
- Your tax file number (TFN).
- A valid form of identification.
- A completed W-8BEN form to satisfy U.S. tax obligations.
- Your bank account number for depositing and withdrawing funds.
Important!
Completing a W-8BEN form during sign-up ensures you’ll reduce the amount of US withholding tax owed from 30% to 15%. The process for completing and submitting this form varies between trading apps.
3. Add Funds And Place Your Order.
With a share trading account established, you’re ready to trade. Here’s how to purchase NFLX:
- Deposit money into your account via your linked bank account or a credit/debit card.
- Use the search field to find ‘NFLX’ or the ticker symbol of the ETF/fund you want to buy.
- Enter the number of shares or purchase amount. Check you’re happy with the listed price for NFLX shares.
- Select an order type. A market order means the sale will be executed at current market rates, while a limit order lets you buy when the stock hits a predetermined price you choose.
Finalise your purchase by clicking ‘buy’. The transaction will settle in 2-4 days, depending on the stock trading app.
Should You Buy Netflix Stock?
In the first quarter of 2024, Netflix added 9.3 million members, representing 16% year-over-year growth. Other key results include:
- Revenue growth of 15% year-over-year, with forecast growth of up to 15% throughout 2024.
- Operating income of US$2.8 billion, a significant increase of 54% on Q1 2023.
- Increased operating margin of 28.1%, compared to 21% in Q1 2023.
- Earnings per share of US$5.28 versus $2.88 the same time last year, with a forecast EPS of $4.49 for 2024.
Growing its revenue streams and subscriber engagement will be essential to Netflix as competitors continue to make inroads.
Chief Financial Officer Spencer Adam Neumann said:
Revenue-generating measures include paid sharing (aka crackdown on password sharing) and ad-supported plans launched in 12 countries in 2022.
Netflix said in April this year that its ads membership grew 65% from the previous quarter, and it was ‘scaling ads to become a more meaningful contributor to our business in ’25 and beyond.”
Important!
More than 70% of Netflix’s audience is based outside the US. It plans to spend the “vast majority” of its US$17 billion content budget for 2024 to fund original and locally-relevant content development.
Netflix’s strengths as a company include:
- Continued investment in original and critically-acclaimed content.
- Effective localisation of content to cater to audiences globally.
- Deeply ingrained cultural cache and loyalty of subscribers.
Challenges facing Netflix include:
- Increased number of competitors and popular content that creates churn.
- Subscriber discontent over programming, advertising and plan costs.
- Production delays and costs due to employee and industry upheaval.
Netflix Stock: A Solid Investment?
Netflix has the largest market share in the video streaming industry, holding strong against major competitors including Amazon Prime and Disney+.
The company’s commitment to original content to engage audiences has helped it build loyalty.
But it remains to be seen whether the company can continue to grow its subscriber base and revenues at the same rate going forward and stay ahead of its streaming peers.
Jody
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