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How can you buy Netflix or Tesla Shares in 2021?

This article will discuss how to buy Netflix or Tesla shares in 2021. 

For anybody looking to invest, especially from countries where it is hard to buy directly, you can contact me on this form.

You should consider the benefits of buying funds, including index funds, over individual shares, and the reason why investing for yourself doesn’t work for emotional reasons.

Introduction:

Share – A ‘Share’ is nothing but a unit of capital that is used to represent a part or a fraction of ownership of a company or a financial structure. 

The person who owns a share is commonly referred to as a ‘Shareholder’. A collection of shares in a company is known as a ‘Stock’. The person who owns stock or stocks in a company is known as a ‘Stockholder’.

Stockholders and Shareholders, both are interchangeable terms (while referring to a person owning shares in a company). Shareholders are owners of shares in a company and stockholders are owners of stocks, which are nothing but a bunch of shares.

The Shareholders are entitled to the value of their share along with profits (if any were to occur). The profits that are paid to the shareholders of a company are known as ‘Dividends’.

The value of a share is calculated as the face value of the share in a company’s overall value. If a company is sold, all the shareholders are paid an amount equivalent to the value of their shares, after all of the remaining debts of a company are paid off.

Suppose, if a person bought a share and after buying the share the value of the share gets increased. Then that person can be able to sell their share and get profits from it in the form of the price difference. This type of profit is called ‘Capital Gains’.

Shares are usually traded (bought or sold) with the help of specific financial facilities known as ‘Stock Exchanges’. Individuals are allowed to trade with the shares of companies that are listed in the stock exchanges.

How to buy/sell shares:

There are two major ways in which a person can be able to buy or sell shares. The two major methods are ‘Exchange Floor Trading’ and ‘Electronic Trading’

‘Electronic Floor Trading’ – This used to be the first and traditional type of trading. This can be observed in movies a lot, where a lot of people would be working while screaming and shouting. These people would often be placing orders on behalf of customers while taking orders via phone calls. 

To be precise, a customer who wants to buy specific stocks or shares would call the office and let a person, who is referred to as a broker, know about their specific requirements. This information provided by the customer is sent with the help of a clerk, to a broker. 

Only upon the agreement of the trader, the customer can be able to acquire shares. This process, as you can see, is very hard and complex. 

‘Electronic Trading’ – This is the most popular and advanced type of trading. The process of trading is also quite easy when compared to Exchange Floor trading. Electronic trading is also known as ‘Online Trading’

Online Trading is done with the help of Online Trading Platforms/Online Brokerage Firms. This helps customers avoid the typical screams and shouts that happen within an exchange floor trading method. People who are willing to trade online require a ‘Brokerage account’.

‘Brokerage Account’ – Brokerage accounts are the accounts that let the individual investors buy, hold, or sell assets. People who want to open a brokerage account are required to submit some documents and information such as Social Security Number, Employment Information, Bank Details, Personal Information, etc.

The process of opening a brokerage account is as follows:

  • First of all, it is very important to choose the best online broker that is suitable for the investor’s needs and requirements. After selecting a perfect online broker, the person is required to open their website.
  • From there, the person has to select the “Open an account” option and after that select “Individual Brokerage Account”.
  • During this stage, the individual is required to provide all the personal information such as Name, Address, Date of Birth, Social Security Number, Government-issued ID and any other information required by the online broker.
  • After submitting the required information, the investor needs to add their bank account information and make an initial deposit.

    The main thing that needs to be considered here is that some online brokers require a minimum deposit. However, it depends on the broker that has been selected by the investor. 
  • After the transfer of the initial deposit is successful, the person is notified by the online broker via a phone call or an email.

This is the process for opening a brokerage account and upon completion of this process successfully, the investor can now be able to buy, hold, or sell assets with the help of their brokerage account.

It is highly suggested to choose an online broker based on factors that are favorable for the investor. Some major factors that are to be considered are Minimum Deposit, Trading Fees, non- Trading Fees, etc.

How to buy Netflix Shares:

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Netflix has benefitted from lockdown

Netflix – ‘Netflix’ is the major American technology and media service provider company that is widely known all over the world for the services provided by it. The main activities of the company are Film Production, Film Distribution and Television Production.

Netflix produces films and series which can be viewed by users on their website. At the same time, they also provide some of the famous movies and web series, which already exist, for their users to view.

People who want to watch movies and series on Netflix are required to subscribe to any of their plans. These plans vary depending on the number of users that can watch and the quality of the videos.

It is true that Netflix is popular among all the countries of the world. Over the recent years, most people have shown a lot of interest to subscribe to Netflix and the number of people who use Netflix has increased a lot. The number of paid users on Netflix is about 193 million.

It was founded on 29th August 1997 in Scotts Valley, California. The headquarters of Netflix is located in ‘Los Gatos, California’ by ‘Reed Hastings’ and ‘Marc Randolph’

It has production hubs in ‘Albuquerque, New Mexico, US’, ‘Iver Heath, Buckinghamshire, England’, ‘New York City, New York, US’ and ‘Tres Cantos, Madrid, Spain’

Netflix offers its services all over the world except for Mainland China, Syria, North Korea and Crimea. The number of employees that work at Netflix is estimated to be around 8,600.

There are many subsidiaries of Netflix. Some of them are DVD Netflix, Millarworld, LT-LA, ABQ Studios, Netflix Animation, Netflix Pte. Ltd., Netflix Services UK Ltd., Netflix Streaming Services, Netflix Streaming Services Inc., Netflix Global, Netflix Studios, Netflix Pty. Ltd., etc.

As per the statistics of Netflix (as of 2019), 

  • Revenue is $20.156 billion
  • Operating income is $2.604 billion
  • Net income is $1.866 billion
  • Total assets are $33.975 billion
  • Total equity is $7.582 billion

Netflix is traded as ‘NASDAQ: NFLX’ and it is a component of ‘NASDAQ-100’, ‘S&P 100’ and ‘S&P 500’. The IPO (Initial Public Offering) price of Netflix was $15 per share when it went public on 23rd May 2002. The current price of Netflix (as of 3 August 2020) is $498.62.

How to buy Netflix Shares – Getting familiar with the information of Netflix, let us have a look at the process of buying Netflix shares such as how to buy them and where to buy them.

  1. Compare and select a good online broker – The major feature that should be searched for in an online broker is that how many exchanges they have access to. People can’t access the shares of Netflix by randomly choosing an online broker because most of the online brokers won’t have access to NASDAQ.

    Therefore, it is necessary to find a broker that has access to NASDAQ. Selecting a broker that just has access to NASDAQ won’t be enough. A person would also have to select an online broker that fits a customer’s needs.

    Some brokers don’t allow anyone to open an account and some brokers have charges and fees imposed on the customers, which are very expensive when compared to most others.

    However, with some brokers, a person can be able to buy Netflix shares once in a while without having to pay any sort of unnecessary fees or charges.
  1. Opening a brokerage account – After successfully selecting an online broker, the next step is opening a brokerage account. The process of opening a brokerage account has been discussed earlier in this article.

    The process of opening a brokerage account could take a couple of days, whereas, with the help of some brokers, this process can be quick and easy.

    To be precise, some online brokers allow investors to open a brokerage account within a few minutes. This account opening process for a brokerage account at an online broker is done completely online.
  1. Deposit money into the brokerage account – After opening a brokerage account, a person needs to deposit money into their account with the help of which, they can be able to buy the stocks of Netflix.

    The person should check the current price of Netflix stock and deposit enough funds that can make them buy the number of stocks they want.

    The process of depositing money into a brokerage account is quick, easy and simple. This can take time depending on the type of transaction.

    Money can be deposited into the brokerage accounts with the help of bank transfer, credit card, or a debit card. Some online brokers even allow users to make deposits using electronic wallets such as PayPal.
  1. Buying Netflix shares – After opening an account and depositing money into it, a person would now have to buy the shares of Netflix. For this, a person should log into their brokerage account, search for the Netflix share and then be able to select number of shares that they wish to buy.

    Netflix shares can be searched with the help of keywords such as NFLX or NASDAQ: NFLX.

    This will execute the buy order, which means initiating the purchase of shares. Placing an order can be done depending on different order types.

    For example, a market order would allow the investor to buy shares at the current market price. Whereas, a limit order allows an investor to determine a specific price at which they would buy that share.

    It is highly suggested to buy shares in such a way that the investment portfolio is diversified, and the risk is minimized.
  1. Regularly monitoring the shares – After buying the shares, the main responsibility begins. They would have to regularly monitor the shares and optimize their shares along with the other assets in their portfolio by balancing the risk factor.

    This includes buying new shares of Netflix when required or selling some shares of Netflix in order to cope with the conditions for a balanced investment portfolio.

    People should remember that assets, which are subjected to low risk, won’t be able to fetch higher profits to the investors. On the other hand, assets having a higher risk factor may result in losses (sometimes even depletion of the entire investment money).

    Therefore, a portfolio should be maintained in such a way that the investors can be able to profit from them. In the long run, any asset would provide good profits for an investor.

    People who opt for long-term investment can attend the annual meetings conducted by Netflix and get all the required information or news about the company. They can also enjoy profits in the dividends (if any) in the meanwhile.

    However, people who wish to gain profits over a short period of time should regularly track the price of their shares and sell the shares when they reach a higher price.

    Making use of position management tools can also come in handy for short-term investors. For example, investors can set a target price, with the help of which, they can be able to sell their shares for a profit upon reaching that price.

    They can also use stop-loss at a certain price which is helpful for avoiding losses when the value of the shares reaches that limit. 

The top-most online brokers to buy Netflix shares based on a survey conducted by us are:


Trading Fees (Stock and ETF Trading)Account MinimumAnnual Fees
Robinhood$0$0$0
Webull$0$0$0
Etoro$0$200$0
Interactive Brokers$0$0$0
Fidelity$0$0$0
YOU INVEST$0$0$25 – $90
DEGIRO$0.004 per each share + €0.5.$0$0

The price of Netflix which started at $15 experienced a lot of hike in the price and is now around $500 approx. It can be considered as a very good option to buy shares. 

The price of a Netflix share was around $300 during December 2019. The huge hike of $200 in price per each share was due to the COVID – 19, which lead to a lockdown causing people all over the world to stay at home. 

As people at home easily get bored easily and want something to watch such as a movie or a series, subscriptions for Netflix increased a lot resulting in the above-mentioned price hike.

However, even if consider the price before this situation, there is a lot of increase in the price. Therefore, a person can expect the shares to have an increase in the price in the long run.

How to buy Tesla Shares:

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Model S

Tesla – ‘Tesla’, which was formerly known as ‘Tesla Motors, Inc.’, is an American company that specializes in Electric Vehicles and Clean Energy. Tesla is also a famous company known all over the world for the services they provide.

The main products of Tesla that happened to be a huge success for the company are Tesla Cars (‘Model S’, ‘Model 3’ and ‘Model X’) and Batteries (‘Powerwall’, ‘Powerpack’ and ‘Megapack’). Tesla also gained a reputation for selling Solar Panels, Solar Roof Tiles and other related products in this field.

Tesla was founded on 1st July 2003, by ‘Elon Musk’, ‘Martin Eberhard’, ‘Marc Tarpenning’, ‘J.B. Straubel’ and ‘Ian Wright’. Robyn Denholm is the chairwoman of the company. Elon Musk is the former chairman and current CEO of Tesla, who also happens to own around 20% shares of the company (which are approximately 34 million shares).

The name Tesla was kept as a tribute for the famous Electrical Engineer ‘Nikola Tesla’ as the company is closely related to the electricity-related innovations.

The headquarters of Tesla is located in ‘Palo Alto, California’. The main vehicle manufacturing plant of Tesla company is the ‘Tesla Plant’, which is located in ‘Fremont, California’. Giga Nevada, Giga New York and Giga Shanghai are some other facilities of Tesla.

Tesla provides its services all over the world (Except for a few countries) and the total number of employees working for Tesla company is 48,016 (as of 2019). The production output of vehicles is 367,500 (2019)

The subsidiaries of Tesla are ‘Solar City’, ‘Tesla Grohmann Automation’, ‘Maxwell Technologies’, ‘DeepScale’ and ‘Hibar Systems’

As per the statistics of Tesla (as of 2019), 

  • Revenue is $24.578 billion
  • Operating income is $-69 million
  • Net income is $-862 million
  • Total assets are $34.309 billion
  • Total equity is $6.618 billion

Tesla is traded as ‘NASDAQ: TSLA’ and is a component of ‘NASDAQ-100’ and ‘Russell 1000’. In 2020, the company exceeded the limit of 1 million cars that have been produced and became eligible for being included in the ‘S&P 500’.

The IPO (Initial Public Offering) price of Tesla was $17 per share when it went public on 29th June 2020 with 13.3 million shares while raising a total amount of $226.1 million. The current price of Tesla (as of 3 August 2020) is $1,485.00.

How to buy Tesla Shares:

As we have had a clear look at the general details related to Tesla, let us have a look at the process of buying Tesla shares such as How to buy them and where to buy them.

  1. Finding a good online broker – The first and foremost thing that should be done by an investor is selecting a good online broker. Everyone should keep in mind that, all the online brokers won’t have access to NASDAQ. Therefore, a person should find an online broker that has access to NASDAQ in order to be able to buy the shares of Tesla. Even after finding a broker that has access to NASDAQ, the investors should make sure it fits with their needs.

    Not all brokers allow anyone to open a brokerage account. Whereas, some brokers might charge fees that are relatively high compared to others.

    Therefore, it is necessary to find a broker, with which, a person can be able to buy Tesla shares regularly without having to pay any sort of additional fees.
  1. Opening a brokerage account – After finding a suitable online broker, a person should create a brokerage account with them. These details regarding this process have been provided earlier in this article.

    The time taken for opening a brokerage account can be instant or it can take a couple of days (in case verification is required). By choosing the right online broker, this process can be quick, simple and easy.

    Some online brokers allow investors to open a brokerage account within a few minutes and the entire process can be done online.
  1. Depositing money into the brokerage account – Once the brokerage account has been created, the person is required to make a deposit.

    It is better to make the deposit in such a way that the investor can be able to buy the number of stocks they want. In order to do that, an investor has to check for the current price of Tesla stock before making the deposit.

    Investors are able to fund their brokerage accounts with the help of Bank Transfer, Credit Card, or a Debit Card. Some online brokers even allow deposits to be made from an electronic wallet (such as PayPal).
  1. Buying Tesla shares – After depositing funds into the brokerage account, the investor is now able to buy the shares of Tesla. Investors can be able to search for Tesla, then select the number of shares they want to buy and buy them.

    Tesla shares can be searched with the help of keywords such as TSLA or NASDAQ: TSLA. This will execute the buy order, which means initiating the purchase of shares. Placing an order can be done depending on different order types.

    A market order would allow the investor to buy shares at the current market price. On the other hand, a limit order allows an investor to determine a specific price at which they would buy that share.

    While buying shares, it is highly suggested to maintain diversity in a portfolio and minimize the risk factor.
  1. Monitoring the shares on a regular basis – Most people think their work is done after buying the shares. They should understand that the main responsibility has just begun. They should monitor their assets regularly and replace some assets to maintain a perfect portfolio.

    This includes buying new shares that belong to Tesla and selling some shares of Tesla in order to maintain a balanced investment portfolio.

    People who opt for long-term investment can attend the annual meetings conducted by Tesla and get all the required information or news about the company. They can also enjoy profits in the dividends (if any) in the meanwhile.

    However, people who wish to gain profits over a short period of time should regularly track the price of their shares and sell the shares when they reach a higher price.

    Making use of position management tools can also come in handy for short-term investors. For example, investors can set a target price, with the help of which, they can be able to sell their shares for a profit upon reaching that price.

    They can also use stop-loss at a certain price which is helpful for avoiding losses when the value of the shares reaches that limit. 

The top-most online brokers to buy Tesla shares based on a survey conducted by us are:


Trading Fees (Stock and ETF Trading)Account MinimumAnnual Fees
Robinhood$0$0$0
Webull$0$0$0
Etoro$0$200$0
Interactive Brokers$0$0$0
Fidelity$0$0$0
ELLEVEST$1, $5, or $9 per month depending on the goals of the customer. $0$12, $60, or $108 per year depending on the goals of the customer. 
DEGIRO$0.004 per each share + €0.5.$0$0

Tesla company, which started at $17 was able to reach $1,485, which is a considerable amount of hike in the price. This means that the company has performed very and there are chances for it to perform well in the future too.

If you have faith in the market performance of Tesla and are willing to invest in it on a long-term basis, mainly for retirement, then a Roth IRA (Individual Retirement Account) could be a perfect place to keep it. 

The Roth IRA is a very good option because it allows the investors to save money by making the investment gains tax-free. Investment gains can be expected to be very high in the long run, for a company like Tesla, and not having a tax-free account might result in some of the profits getting wasted in the form of taxes.

Which is a better buy? Netflix or Tesla?

Netflix vs Tesla – Both the companies Netflix and Tesla have known to be the best and have an exceptional performance in the markets. When it comes to choosing between these two, let us take a dive into the details of both the companies before coming to a conclusion.

Netflix – Netflix can be considered as a tech giant with more than 190 million paid subscribers. This makes it the best video streaming platform in the world. However, the rivalry is getting tough.

Apple and Walt Disney Co. entered the streaming business with their lucrative offerings. Disney+, started by Disney Company, can be a significant problem for Netflix because Disney+ is also getting a lot of subscriptions as time passes by. 

Disney+ currently has over 54.5 million subscribers. 

Apple is also going to perform well in the upcoming years while creating chances for Netflix to move from the number one position to number 3.

We should also remember that Amazon also provides media streaming services, however, it is not limited to it as it is a premium subscription for the users of Amazon. Amazon Prime video can also take away some users from Netflix. 

In addition to that, people won’t make use of Netflix as they are using it now after the COVID-19 situation ends. A general prediction is that people will get back to their regular lives and use streaming platforms like Netflix less compared to now.

Tesla – Tesla has been a game-changer over the last few years. In spite of the craze created for Tesla on its Cyber Truck, Tesla performed well because of the already existing Model 3. 

In 2020, there is an estimated launch of Model Y and the company’s expansion outside the US. Elon Musk has been taking all the necessary measures to increase the performance of the company. 

However, the renewable energy business and other services provided by Tesla are also expected to have a price hike in the upcoming day. Even the stocks of Tesla are riskier, they are expected to have the potential to gain more profits over the upcoming years.

Bottom Line:

Tesla and Netflix, both are performing well as of now. However, the magic of the stock market is that nobody could predict what will happen over the next few years. People should also consider the backdrops of these shares along with focusing on the benefits. Out of these two, Tesla even being the riskier stock, has the potential for earning more profits in the long run compared to Netflix.

Investments in the stock market are subjected to risks and people should get all the required information on a share before buying it. If you are seeking investment-related advice, information for choosing an online broker, or services of a financial advisor/wealth manager, you can be able to avail the expert services offered by us.

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