For crypto traders, investing in stocks can be a strategic step to diversify their portfolio and better manage risk.
One stock that has caught our attention is Netflix, which has shown significant growth in the technology and entertainment sectors.
So, why do crypto traders need to understand the potential of stocks like Netflix? By taking advantage of this opportunity, they can expand their investment choices and take advantage of stock market movements that are different from the crypto market.
Also Read: Top 10 Fastest Growing American Technology Companies!
Netflix Inc. Profile
Netflix was founded in 1997 by Reed Hastings and Marc Randolph in the state of California, United States. Initially, the company focused on renting DVDs through the postal delivery system.
However, in 2007, Netflix changed its business model by launching an on-demand video streaming service, allowing users to watch movies and TV shows directly over the internet.
This decision led Netflix to become a pioneer in the digital streaming industry, which then dominated the global entertainment market.
Netflix itself has established itself as a dominant player in the streaming market, with more than 247,000,000 users worldwide.
The company not only provides a wide selection of movies and TV shows, but also acts as a producer of popular original content, further strengthening its position in the entertainment industry.
As of January 12, 2024, Netflix’s market capitalization value is known to have reached $215,100,000,000.
In addition, Netflix has expanded its reach by collaborating with various cable, satellite and telecommunications operators to provide their services through TV set-top boxes, further expanding its user base worldwide.
Netflix Stock Performance
Quoting the id.investing.com page, on January 9, 2024, Netflix’s stock price closed at $875.00, down 0.48%.
In the after-hours session, the stock price fell slightly to $874.55. The stock price trend shows daily fluctuations that vary in the range of $873.00 to $886.22.
Meanwhile, Netflix’s daily stock price range is between $873.00 to $886.22, while the annual price range (52 weeks) is between $475.26 and $941.75.
On the other hand, Netflix’s current market capitalization is $374,030,000,000. Netflix’s Price-to-Earnings (P/E) ratio is 48.59.
This figure shows a relatively high valuation compared to several competitors in the entertainment sector even though the company continues to show significant growth in revenue and net profit.
Netflix Stock Historical Data Analysis
Quoting the id.investing.com page, in the period from December 10, 2024 to January 10, 2025, Netflix’s stock price experienced significant fluctuations.
The stock reached its highest price of 941.75 USD on December 11, 2024 and fell to its lowest price of 873.00 USD on January 8, 2025. The daily price range varied between 873.00 USD and 886.22 USD on January 9, 2025.
During this period, Netflix showed negative price changes on several days, with the largest decline of -4.23% on December 11, 2024.
Basically, Netflix’s stock shows an uptrend in the long term despite occasional declines. For example, on December 11, 2024, the stock price experienced a positive spike of +2.54%.
However, in the short term, the stock price fluctuates along with the company’s performance reports and market conditions. The highest increase was recorded at the end of 2024, with the stock price reaching 941.75 USD on December 11.
On the other hand, several external factors influenced the movement of Netflix’s stock price. The launch of popular original content, expansion strategies into international markets, and increasing number of subscribers contributed to the surge in stock prices.
In addition, global market conditions and economic policies also affected Netflix’s stock performance.
For example, in the period of December 2024, the overall market experienced volatility, which significantly affected stock prices, both in the US and global stock markets.
Also Read: These are 5 American Stocks with the Largest Dividends, Must Check!
Netflix Stock Trading Opportunities for Crypto Traders
Crypto traders can leverage Netflix stock to diversify their portfolios and explore new profit opportunities. Here are some opportunities to take advantage of.
1. Diversification Benefits
Combining Netflix stocks with a crypto portfolio provides traders with the opportunity to diversify their investments.
By having a combination of more stable stocks and volatile crypto assets, traders can reduce the total risk of their portfolio.
Netflix stocks, which have stable growth potential, can act as a hedge against sharp fluctuations in the crypto market, creating a balance in risk management.
2. Leverage and Margin
Like margin trading in the crypto market, trading Netflix stocks also offers the opportunity to use leverage. With leverage, traders can enlarge their trading positions with smaller capital.
This allows crypto traders to take advantage of Netflix stock price fluctuations and make bigger profits, similar to the strategies used in crypto trading.
However, it is important to remember that using leverage increases the potential for losses if the market moves against the position taken.
3. Profit Potential
Netflix stocks, although not as volatile as crypto assets, still show quite significant price fluctuations in the short term.
Crypto traders accustomed to high volatility may see profit potential in Netflix’s more controlled, yet still profitable, stock price movements.
While not as volatile as crypto, Netflix’s stock price movements can still provide profitable trading opportunities, especially for traders who can capitalize on short-term price momentum.
Netflix Stock Trading Tips and Strategies
For Netflix stock trading, here are some tips and strategies that can be applied:
Short-Term Strategy: Take advantage of daily price movements through scalping or day trading techniques to profit from rapid price fluctuations.
Long-Term Strategy: Focus on fundamental analysis of the company, such as financial performance and growth trends in the streaming industry, to determine more stable investment decisions.
Risk Management: Determine stop loss and take profit levels wisely to protect capital and ensure profits even if there are unexpected market movements.
Also Read: These are the 5 American Stocks with the Largest Dividends, Must Check!
Comparison of Netflix Stocks with Crypto Assets
Here is a comparison between Netflix stocks and crypto assets that is important to know:
1. Volatility
Crypto assets tend to be more volatile than Netflix stocks, with sharper and more unpredictable price movements. Netflix stocks, although they can be volatile, generally have more stable movements in the long term.
2. Liquidity and Trading Hours
Netflix stock trades during stock market hours (usually Monday through Friday, 9:30 a.m. to 4 p.m. EST), while crypto assets can be traded 24/7, giving traders more flexibility.
3. Analysis
For Netflix stock, traders usually focus more on fundamental analysis, such as financial performance and company news.
Meanwhile, for crypto, traders rely more on technical analysis because the crypto market is more influenced by sentiment and external factors.
Conclusion
So, that was an interesting discussion about Netflix, Inc. (NFLX) Stock: The Best Investment Opportunity 2025 that you can read in full at the Crypto Academy at INDODAX Academy. Not only does it increase your insight into investment, here you can also find the latest crypto news about the crypto world.
In addition, find the latest information about the most complete collection of crypto articles from Indodax Academy. Don’t miss the opportunity to expand your knowledge in the world of investment and digital technology!
In closing, understanding Netflix stock provides an attractive diversification opportunity for crypto traders.
By including stocks like Netflix in your portfolio, traders can reduce the risks associated with crypto volatility, while taking advantage of the company’s strong growth potential in the entertainment and technology sectors.
This diversification can provide a balance between stock stability and higher returns from crypto price movements, creating a more balanced and more controlled risk investment strategy.
As additional information, with the convenience offered by the Indodax platform, now is the time for you to take advantage of the great opportunity to invest in US stocks and crypto assets in one integrated account.
Don’t miss the opportunity to expand your portfolio with over 50 stocks listed on the US stock exchange, as well as various crypto assets.
So, let’s explore INDODAX’s latest features and start investing now to maximize potential profits in the global market!
FAQ
1.What is Netflix stock and why is it attractive to traders?
Netflix stock is a stock of a technology company that focuses on video streaming services. This stock is attractive because of its high volatility and large business growth potential in the digital era.
2.How has Netflix stock performed in recent years?
Netflix stock has shown a positive trend with significant growth, although it has experienced fluctuations due to external factors such as the release of new content and changes in global market policies.
3.Is Netflix stock suitable for diversifying a crypto portfolio?
Yes, Netflix stock can be a diversification option because it has different characteristics from crypto assets, helping to reduce portfolio risk.
4.How do I start trading Netflix stock?
You can start by opening an account on a platform that supports international stock trading, using strategies such as leverage to maximize opportunities.
5.What are the main differences between stock trading and crypto trading?
Stock trading tends to be more stable and influenced by company fundamentals, while crypto trading is more volatile and sensitive to market sentiment and technology news.