Netflix shares – Are they worth buying?

To gain more insight as to whether it would be worthwhile for an investor to buy Netflix stocks, it is imperative to evaluate the company, its financial history as well as its share performance over the past year.

Company overview

Netflix was established in 1997 and is based in Los Gatos, California. Netflix Inc trades its shares on Nasdaq under the stock symbol NFLX. Netflix specialises in the provision of streaming entertainment services to consumers around the globe. There are around 193m paid members spread across 190 countries worldwide. Netflix offers a comprehensive portfolio of television series, documentaries and feature films spread across an array of genres and languages. Paid members are offered the ability to access streaming content through a variety of devices connected to the Internet, including TVs, digital video players, television set-top boxes and mobile devices.

Financials

As per Netflix’s earnings report for the third quarter ending on September 30, the company accumulated revenues amounting to $18 351 614 in addition to an operating income of $3 631 047. Its net income amounted to $2 219 239 and basic earnings per share (EPS) was $5,04, with a diluted EPS of $4,89.

Performance YTD

When viewed holistically over the past year, NFLX stocks show substantial positive performance, from $289,62 on November 14 last year to $482,84 on November 16 this year. Throughout the year, NFLX stocks experienced some highs and lows, with only one notable decrease in price occurring on March 16 when the price fell to $298,84 from $336,30 on March 13. NFLX stocks reached an all-time high on October 13 with a price of $554,09. This stock has a current positive short- and long-term performance outlook, which should reassure current investors and attract numerous new investors.