Netflix Stock Binary Options Brokers Comparison
The company also sends DVDs by mail. Netflix business model is categorized into domestic DVD distribution, local streaming and global streaming. Through fixed-license fees, Netflix obtains content from third party studios and then streams these movies and TV shows. The company earns through revenue sharing and direct purchase agreements.
Netflix stock trades on the Nasdaq under the ticker symbol NFLX
Why trade Netflix Stock
Netflix Inc. has been one of the best performing technology companies in 2015 in terms of stock performance. The company’s stock has gained over 65% year to date compared to only 0.8% gains made by the Dow Jones and 2.1% by the S&P 500 in the same period. After announcing its Q1 earnings in April 2015, Netflix shares rose to trade at a record high of $576 and stabilized at $565 for each share.
Although the company reported lower than expected earnings per share and revenue in its Q1 2015 report, analysts see Netflix stock as a good investment due to its rapidly growing user base. In Q1, the company’s global user base had grown to 62.3 million, surpassing the company’s goal of 60 million subscribers. Netflix streaming services are now available in more than 50 countries.
Another reason to trade Netflix stock is that the company has a strong market valuation of about $25 billion. The company’s strong market value position allows it to compete with giants in the media industry including CBS (market capitalization of $34 billion) and Discovery Communications (market capitalization of $28 billion)
|BINARY OPTIONS BROKERS COMPARISON|
Type of available binary options for Netflix Stock
The common contract types for trading Netflix stocks are:
• Basic Call/Put options: Predict if the price of Netflix stock will move up or down before the expiry time.
• Touch options: Predict whether the price of Netflix stock will touch the given strike price before the expiration time.
• In/Out: Predict whether the price of Netflix stock will stay within a range of two strike prices.
Possible signals for Netflix Stock
Pivotal Research Group among other financial market analysts has raised their price target for Netflix stock by more than 30%. This has seen Netflix stock rise toward the $600 point, making it among the only four companies on the S&P trading at this level. Netflix’s rapid international roll out of video streaming services has seen the stock surge by 4.5% to trade at almost $613.
Netflix is in talks with Chinese companies in an effort to expand its services to the massive Chinese market. This has seen the company’s stock trade at a record high of $618.
Factors Influencing Price of Netflix Stock
Netflix Inc. faces very stiff competition from local and international content providers. Within the U.S. market only, Netflix is already facing competition from Apple and HBO who have launched their own TV streaming services. Competition may dampen Netflix’s earnings and thus impact on stock performance.
Netflix’s international expansion plan has to contend with local content regulations in large markets in Asia and Europe Currency volatility has already impacted on Netflix’s Q1 earnings. Further fluctuations and a strengthening dollar could hurt the company’s financial position and thus its stock value.