4 Reasons It’s Still Worth Investing in Netflix Despite Its $1K Stock Price
Written by
Chris Adam
Edited by
Zuri Anderson
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In investing, it’s common to look at the stock price as a starting point to determine where to put your money. After all, it can seem risky to invest in a stock where the price is higher than your preferred limit.
However, sometimes a company is doing so well that it might be worth investing — even if the stock price is around $1,000. According to some financial experts who talked to GOBankingRates, that’s the case with Netflix, which has been showing strength even in recent months, as reported by Investor’s Business Daily.
Content Strategy
Andrew Lokenauth, owner of Be Fluent in Finance who’s been investing in tech stocks for years, said Netflix continues to impress him.
“Back in September, I bought more shares despite the steep price — and I’m glad I did,” Lokenauth said. “The thing is, their content strategy is crushing it. Just look at how they’ve dominated the streaming wars with hits.”
Justin Farmer, CEO of Exit Wealth Advisors, noted that Netflix is far and away the category leader.
“We like holding category leaders,” Farmer said. “Look for good entry points, now is such a time, and buy category leaders.”
International Opportunities
“From my experience analyzing streaming platforms, Netflix’s international growth is where the real potential lies,” Lokenauth noted. “They’re pushing hard into markets like India and Brazil, where they’re seeing massive subscriber growth.”
Pricing Power
Lokenauth said a good sign for a company is when they can raise prices multiple times without losing subscribers in any meaningful way.
“I saw this firsthand when Netflix bumped up prices in April — my subscribers barely noticed,” according to Lokenauth. “The platform is basically becoming a utility for most households, like electricity or the internet.”
Netflix Debt
Per Lokenauth, Netflix’s debt situation has improved dramatically.
“They’re now cash flow positive and actually generating enough money to fund their own content — a complete turnaround from a few years ago when everyone was freaking out about their debt levels,” he said.
“The $1,000 price tag might seem steep, but remember that you’re not just buying a streaming service. You’re buying a global entertainment powerhouse that’s consistently ahead of the curve.”
Farmer said the number to focus on is the percentage gain or loss of a stock, not the number of dollars it rises or falls.
“It’s often the case that younger investors gravitate toward stocks that have a lower price per share,” Farmer noted. “It’s a psychological thing, but not one grounded in the fundamentals of good investing.”
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