Buy Netflix shares in the UAE
Netflix is known to users for the Internet cinema of the same name. Customers of the service can rent movies or TV series by watching them on their TV in high quality. In many countries around the world, the service has become an integral part of life, as it allows you to watch all new movies in HD, Full HD and 4K, even during the period of movie releases.
The company was founded on 29 August 1997 by Reed Hastings and Mark Randolph. It is headquartered in Los Gatos, California.
Initially, the company employed 30 specialists who offered customers to rent discs on which 925 movies and TV series were recorded. Today, Netflix is considered one of the leading Internet TV networks for customers in many countries around the world.
By the end of 2020, Netflix already had 203.66 million subscribers worldwide and became the first online movie theatre to cross the psychological milestone of 200 million.
Netflix had annual revenues of $24 billion and operating income of $4.6 billion. Net income was $2.76 billion versus $1.87 billion a year earlier.
The Netflix team was able to realise high-quality monetisation. Because of this, the financial performance of the business is only growing. And investors are increasingly interested in how to buy Netflix shares.
Despite the fact that Netflix is a company with billions of dollars in turnover, today not only large companies or owners of large capitals can invest with Netflix shares, but also ordinary residents of any country in the world.
Today we are going to see how to invest in Netflix shares in the UAE.
How to invest in Netflix shares in the UAE?
Netflix was listed on the NASDAQ in mid-2002. On the first day after the IPO alone, more than 5.5 million Netflix shares were sold on the US stock exchange. In total, almost 430 million securities with a par value of $0.001 are currently in free circulation. Netflix shares, in turn, are included in the NASDAQ 100, S&P 500 and Dow Jones Internet Composite stock indices.
You can only invest in Netflix stock with the help of an exchange intermediary, a broker that deals in Netflix stock. Finding such a broker in the UAE is not a problem now; fortunately, there are many brokerage firms in the UAE that work with foreign stocks. Be sure to check if the broker of your choice is licensed to do this type of activity. Also check what the commission for the services is, what is the functionality of the online investment platform provided by the broker, etc. Ask what comments from market experts about cooperation with this broker.
To invest in Netflix shares, look for the symbol NFLX on the online trading platform.
One thing to remember when investing in a company is that Netflix does not pay cash dividends. The company attracted money from investors for its development, so it now has too much debt. This prevents the board from calculating cash dividends for shareholders. So, in the form of dividends, the company's shares were divided in a ratio of 7 to 1. The investor received 6 new shares for the Netflix shares in his portfolio. In the future, it is likely that after the decrease in the debt burden, the issuer's management will decide to pay cash dividends to all the company's security holders.
For the first time at year-end, Netflix showed positive cash flow from operating activities: $1.9 billion versus -$3.3 billion in 2019. Management expressed confidence that in 2021 this will not change and there will no longer be a need to attract external investment.
As of 31 December 2020, the company had $ 8.2 billion in cash and cash equivalents compared to $ 5.02 billion in the previous year.
Therefore, there is a possibility of resuming dividend payments in monetary terms.
However, so far the only option for investing in Netflix is CFDs.
In essence, a CFD is a derivative financial instrument that allows you to earn income by increasing and decreasing the price of the underlying commodity or security. CFDs are most often used for speculative trading. For example, in the case of shares, a CFD is derived from a share purchase agreement that allows you to speculate on the movement of share prices without having to register ownership of those shares. You can make a profit by simply predicting and correctly predicting the direction of price changes.
At the time of writing, Netflix's share price is $501.86, up 40.23% from the same period last year.
How to buy Netflix shares in the UAE?
You can buy Netflix shares using the online investment platform provided by the broker.
To get started, make a simple registration by entering your first name, last name and a valid email address in the registration form on the site. When you click on the "register" button, you will receive a link to confirm your email address. Follow this link to verify your email address and you will be able to use the platform.
The online investment platform is a unique software, an innovative development that allows you to literally see the stock market in the palm of your hand. Here you have real-time access to the quotes of all companies involved in share trading, trading hours, links to current news, the "training" section with video lessons and much more.
You must start trading with a free demo account, to which almost all trading platforms provide access. The demo account is opened automatically and free of charge, the system credits a fictitious amount of $10,000 to such accounts (this amount may differ on different platforms), and you can use these funds for test transactions. This notional amount can be renewed if the test transaction turned out to be conditionally unprofitable. You can use such an account for as long as you wish until you feel ready to trade with real money.
The benefits of a demo account are obvious: you get trained in trading without risking equity. Of course, it is impossible to withdraw funds from such an account.
With sufficient experience, you can initiate real purchases on the stock exchange. To initiate real transactions, top up your real account by an amount of $10 (the minimum top-up amount may differ on different online platforms). You can top up your account using the payment systems listed on the platform. Using the same systems, you can withdraw your funds.
Netflix shares are traded on the stock market under the ticker symbol NFLX. Entering this symbol will open a section of the trading platform with a schedule of Netflix share prices. Here you will see information about the current price per share, the trading calendar, the "investor sentiment" scale, indicators for technical analysis and more. You will also see a toolbar for trading: stop loss function, multiplier, etc.
Is it advisable to invest in Netflix shares in the UAE?
Remember that the risk you take when investing in stocks online depends largely on your comprehensive knowledge, understanding of how the stock market works, in-depth analytical skills, experience and even intuition.
Investing is a science that requires a potential investor to understand certain patterns and processes, as well as requires constant training and deepening of knowledge.
If you persistently study these processes, follow market trends, the behaviour of certain companies, you will eventually learn to analyse and forecast possible growth or decline in the value of the company's assets. This will enable you to make successful investments in the investment market and grow professionally as an investor.
To do this, you must constantly improve your knowledge of investment science.
Also keep in mind that share prices are affected by factors such as the political and economic situation of the country you are in and the home country of the company you are investing in, as well as global processes. Therefore, we advise you to be aware of all the news, monitoring them constantly.
Netflix is a good option for investment. The popularity of the online service is constantly growing and the opportunity to try investing through the Internet are good reasons to give it a try.
If you want to succeed in terms of investing, constant market research should become your habit, your lifestyle.
The modern economy is very changeable, and life is quite dynamic. To understand the laws of the market you need to follow the political situation in the country, economic processes in the country, as well as the economy and political situation in the world as a whole. You also need to understand whether the product or service produced or provided by the company you are investing in is in demand. Will this company have growth and development or not.
Constant training and attention to detail will help you become a good investor and achieve financial success through investment.