Investing in Netflix: What to consider

Netflix (NFLX) has been steadily growing at an impressive rate over the past few years. The Netflix chart shows that the NFLX stock price has displayed a recurring pattern of reaching new records, then reverting to losses, then climbing again. Since 2013, the company has been showing gains year-over-year. The Netflix stock price is affected by two main factors: Subscription numbers and news related to original content. For example the company’s report for Q4 of 2016 has shown an increase of more than 7 million subscribers, sending NFLX stock price up by more than 8% on the day the report was released.

Follow Netflix (NASDAQ: NFLX) publications and financial reports in their Investor Relations Page.

Following years of focusing the domestic market in the US, Netflix has been making an effort to grow its international audience with great success. After maintaining gradual international growth, the company became available almost anywhere in the world in 2016. By distributing quality content, both original and acquired, while offering prices which rival those of cable and satellite TV providers, Netflix has been able to expand rapidly to the global market. The potential market for Netflix is still huge, and the company is constantly adding new content to its streaming service.

It is important to note the other players in the online streaming field, such as Hulu and Amazon Prime, which are offering similar services, and are also producing their own content. However, Netflix is still very much a leader in the online streaming space, and since all of the aforementioned platforms offer competitive prices, it is not unlikely that many users will decide to subscribe to more than one service, rather than alternating between them.