NETFLIX stocks - brief description and characteristics

Netflix operates its business through the following segments:

• home streaming

• international streaming

The domestic streaming segment generates revenue from monthly membership fees for services consisting of streaming content to its members in the United States.

The international streaming segment generates revenue from streaming content to its members outside the United States. The international streaming segment consists of fees collected from subscribers located in countries other than the United States.

Netflix's own production includes hits such as Stranger Things, House of Cards, Squid Game, The Queen's Gambit, and Ozark. In addition to its own productions, Netflix also offers foreign-produced films, series, and documentaries.

As of the second quarter of 2023, more than 238 million people worldwide were Netflix customers. This makes Netflix the dominant player within its market segment with an estimated share of slightly over 45%. Far behind are Disney+ and Amazon Prime.

NETFLIX stock performance

Netflix went public on May 23, 2002 with an initial share price of $15. It was listed on the NASDAQ market because of its emphasis on technology. By 2023, NETFLIX conducted two stock splits despite the company's initial stock price of $15. The first took place in 2004 at 2 for 1. The second began in 2015 at 7 for 1.

And as a result, this gives the company an initial listing price of $1.21 in order to explore the upside of Netflix stock since its IPO. Netflix has evolved into a large-cap company since its IPO. In fact, Netflix stock hit a record high of $700 at the end of 2021. This reflects total gains of more than 57,000% compared to the adjusted IPO price.

Since then, Netflix shares have fallen from the previous $700. In fact, the company has fallen to 52-week lows. Netflix stock has seen a 62% decline in earnings over the past year (2022). Netflix stock is up only 15% over the past five years.

In contrast, the NASDAQ stock market is up 85% over the past five years and down 15% from the previous year. Therefore, Netflix stock has performed poorly compared to the overall market in 2022.

Trading NETFLIX (NFLX) with Purple Trading

To start your NETFLIX CFDs trading, first you need to locate the ticker NFLX on our Purple Trading MetaTrader 4 platform. To open a trade, either double click or press the new order button and the following window will pop up.

Lot value calculation

When you open our Metatrader 4 platform and click on the NFLX ticker, you'll observe that the minimal volume for trading NETFLIX CFDs is one lot (1.0). If you trade one lot, you will gain or lose 10 USD for each 10 USD the stock makes as you are buying at a 1:1 ratio (1 lot equals 1 share). For example, you buy 5 lots at 150 USD, and NETFLIX goes to 160 USD. Your total profit will be 50 USD (calculated as 10 USD (1000 cents) movement * number of lots/shares per the move). The same logic applies to calculating your profit or loss when entering a short position.

Keep in mind that NFLX is quoted in US dollars, therefore if your account is in EUR or another currency, your profit or loss must be converted to EUR at the current exchange rate.

You can trade at the current market price (market execution) or utilize pending orders, (limit and stop orders). You can initiate the trade without the stop-loss and take-profit orders now and add them afterwards.