Netflix (NFLX) is the world’s largest video streaming company with over 221 million paid subscribers as of Q1 2022.
If you’re looking for an in-depth analysis of the Netflix stock crash debacle then check out our complete NFLX stock analysis over at SeekingAlpha.
Should You Buy Netflix Stock After the Crash?
Netflix still has over 221 million subscribers and plans to fix some of the company’s biggest pricing issues and account sharing problems.
Wall Street overreacted and dumped the shares without digging much deeper. The company plans to spend less on new content and focus on higher-margin content. A new ad-supported subscription option could boost subscribers and bring in new eyeballs.
There is no reason to panic right now. Netflix has a long history of returning value to shareholders.
This is a great buying opportunity in my opinion. Be greedy when others are fearful.
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How to Buy Netflix Stock
Buying shares of Netflix is simple. All you need is a brokerage account and you can begin investing in Netflix stock as soon as your account gets approved.
1. Open a Brokerage Account
There are two different types of brokerage accounts: discount online brokers and full service brokers.
The cheapest option is to open a discount brokerage account because they charge lower trade commissions, lower overall fees and make things easier for the average investor.
If you need more hands on services and investment insight, then try opening a full service brokerage account.
Here are my favorites:
- Ally Invest: Best online discount broker with $4.95 stock trades and zero minimums
- Fidelity: Best full-service broker with free trades and zero minimums
- Robinhood: Best Free stock trading broker with $0 trading commissions (Good for younger investors)
If you want to get started with a little bit of money, then you can purchase fractional shares using M1Finance and Stash.
2. Decide How Much You Want to Invest
Shares of Netflix are currently trading around $290 so you’ll need a couple hundred bucks to buy at least 1 share. Most full service and discount brokerages don’t allow you to purchase fractional shares. If you want to invest a smaller amount, then sign up for Stash Invest to buy fractional shares of Netflix.
3. Place Your Trade
Once your account is setup, it’s time to purchase some shares. When you enter the ticker into your account, you will see two numbers: the bid and the ask.
It’s a gap between the highest and lowest price buyers and sellers are willing to pay. It’s a good strategy to buy on dips, meaning buying the stock near the lowest bid or the day’s lowest price.
When making your trade, you will be asked to enter the following:
- Number of Shares: Total number of shares you are buying
- Order Type: Market or Limit Order
- Execution Time: GTD (Good until Cancelled) or For today only
A market order is when your order will be filled immediately regardless of price. This is best for long term investors but is dangerous when a stock is soaring quickly in value. You can sometimes buy at the peak then watch the stock fall in price shortly after.
A limit order is when you set a maximum price you are willing to pay for a stock. This is a much better strategy and lets you prevent overpaying on a stock. If the stock doesn’t reach your limit, then the order never executes.
Submit your order and now your order will be filled by your broker. Be sure to refresh your account until the order status has changed to filled.
Once your order has been filled, you are officially a Netflix shareholder!