How to Buy Netflix (NFLX) Shares in Australia: A Comprehensive Guide

How to Buy Netflix (NFLX) Shares in Australia : Netflix, the world’s leading streaming service, continues to thrive despite increasing competition from other platforms. With impressive results from its latest earnings report, Netflix has captured the interest of investors globally. If you’re in Australia and wondering how to purchase Netflix shares, this guide will walk you through the process step-by-step.

Table of Contents

Netflix’s Growth Story

Netflix’s recent Q3 2024 financial results demonstrate its strong recovery and sustained growth:

Profit Surge: Net profit soared to $2.36 billion, up from $1.68 billion a year earlier.
Revenue Beat Expectations: The company reported $9.83 billion in revenue, surpassing Wall Street predictions.
Subscriber Growth: Over 5.1 million new subscribers joined in the quarter, raising its global subscriber base to 282.7 million.

Looking ahead, Netflix aims to focus on its financials rather than subscriber numbers, projecting 2025 revenue between $43 billion and $44 billion.

Steps Buy Netflix (NFLX) Shares in Australia

1. Open a Brokerage Account

To invest in Netflix, you’ll need a trading account with a regulated stockbroker. Options range from traditional brokerage services to mobile-first trading platforms designed for convenience.

Considerations Before Opening an Account:

Define your financial goals.
Be ready to endure market fluctuations.
Research trading fees and choose cost-effective platforms.
Understand tax implications on investment profits.

2. Know Where Netflix is Traded

Netflix shares are listed on the Nasdaq Stock Exchange in the U.S. under the ticker symbol NFLX. Nasdaq’s trading hours are from 9:30 AM to 4:00 PM (US time), Monday through Friday.

For Australian investors, remember these key points:

Ensure your brokerage account supports trading in U.S. stocks.
Be aware of foreign transaction fees.
Complete a W-8BEN form to potentially reduce U.S. dividend withholding tax from 30% to 15%.

3. Conduct Thorough Research

Dive into Netflix’s financials, strategy, and performance by visiting its Investor Relations page. This will help you make an informed investment decision.

4. Decide Your Investment Strategy

Investors typically choose between two strategies:

Lump Sum Investment: Buy a significant amount of shares at once.
Dollar-Cost Averaging: Invest smaller amounts at regular intervals, reducing the impact of price fluctuations.

5. Place an Order

Once you’ve made your decision, log in to your trading account. Search for NFLX, enter the number of shares or the amount you want to invest, and place your order.

6. Monitor Performance

Regularly review Netflix’s performance to assess whether to hold, buy more, or sell shares. Periodic evaluations ensure your portfolio aligns with your financial goals.

How to Sell Netflix Shares in Australia

When it’s time to sell:

Log in to your brokerage account.
Search for NFLX and enter the quantity to sell.
Confirm the transaction.

Keep in mind:

Capital Gains Tax (CGT): If you’ve held the shares for less than 12 months, you’ll pay CGT at your full income tax rate. For shares held longer than 12 months, a 50% CGT discount applies in Australia.

Investing in Netflix Through Funds in Australia

If investing in individual stocks feels risky, you can opt for funds that include Netflix as part of a diversified portfolio.

Index Funds: Passive funds tracking the Nasdaq index often include Netflix.
Active Funds: Actively managed funds focusing on U.S. tech companies may also hold Netflix shares.

This approach spreads risk across multiple companies, helping to cushion the impact of market volatility.

FAQs About Buying Netflix Shares

Q: How can I buy shares in Netflix in Australia?

A: Open a brokerage account, research Netflix’s performance, and place a buy order through your platform.

Q: Is now a good time to buy Netflix?

A: This depends on your investment strategy and market outlook. Conduct thorough research or consult a financial adviser.

Q: What’s the highest Netflix shares have reached?

A: As of now, Netflix’s shares are trading near record highs, recently hitting $763.89 USD.

Q: Does Netflix offer ad-supported plans?

A: Yes, Netflix’s ad-supported tier, launched in Australia in November 2022, costs AUD $7.99/month, making it a budget-friendly option.

Q: What is Netflix’s Basic Plan?

A: The Basic Plan offers streaming on one device at a lower cost, without ads but with limited resolution compared to premium plans.

Disclaimer: Investing in stocks involves risk, and past performance doesn’t guarantee future success. This guide is for informational purposes only and does not constitute financial advice.