3 min
23-June-2025
Netflix stock has become a household name for global investors, especially those in India exploring international exposure. As a pioneer of the OTT revolution, Netflix combines strong brand equity, expansive content libraries, and robust subscriber growth. This guide will help you understand Netflix’s business, the case for investing in Netflix, steps to buy shares from India, benefits, risks, tax implications, and future prospects. Whether you are a seasoned investor or a beginner, this article equips you with insights and tools to navigate the process effectively.
As of June 10, 2025, Netflix holds a market capitalisation of around US$512billion (₹42lakhCr equivalent)—a mega-cap in media. It is listed on NASDAQ under the ticker “NFLX” and features in the S&P500 and Nasdaq‑100. Co‑CEOs Greg Peters and Ted Sarandos serve under executive chair Reed Hastings.
The business model relies on recurring subscription fees, attractive content investment, and innovation in ad‑tier services and password monetisation. It is targeting US $1trillion market cap by 2030 source. Key recent developments include record subscriber additions, introduction of advertising tiers, global price hikes, live sports rights, mobile games and redesigned interfaces.
1. Content leadership
Netflix continues to lead in original and licensed content, expanding in genres and languages tailored for global audiences, including India. This drives subscriber growth and retention.
2. Strong financial performance
In Q12025, Netflix reported US$10.54billion revenue, up +12% YoY, with net income of US$2.89billion (Earnings per share US$6.61). Operating margins reached ~29%, their highest ever.
3. Resilient growth strategy
Even amid global headwinds, Netflix remains tariff-resistant, gaining ~10% in 2025 while the broader market declined. Its mix of subscription, advertising, gamification and live sports supports revenue diversification.
4. Ambitions for trillion-dollar valuation By 2030, Netflix plans to double revenue, monetise password sharing, raise prices, expand ads and live sports to justify its US$1trillion ambition source.
5. Defensive during downturns
With strong subscription cash flows and affordable entertainment, Netflix has acted as a recession-resistant stock.
6. Equity upside
Trading at high P/E (~58x) and with global exposure, investing in Netflix offers both growth potential and premium valuation. Investors should balance patience and portfolio allocation.
Global brand & reach: 300+ million subscribers in 190 countries, content in 50+ languages .
Growth & profitability: 12% YoY revenue growth, US$2.89b profit and record 29% margin.
Defensive play: gains +10% in 2025 while peers declined; grows even in downturns.
Diversified revenue streams: subscription fees, ad tier, password monetisation, live sports, and mobile games provide resilience.
Market leader: among the largest media firms, well-positioned in growth categories with high entry barriers.
High valuation: trading at P/E ~58x, leaving limited margin for error.
Intense competition: Disney+, Amazon, local services vying for market share and costing heavily.
Slowing subscriber growth: recent reporting reflects slowing global additions.
Execution risk: newer efforts in ads, games, and sports may not deliver as expected.
Currency risk: INR‑USD fluctuations can enhance or diminish rupee returns.
Regulatory uncertainty: US or India regulations, geopolitical tensions may affect cross-border trading or content.
capital gains tax: US stocks are treated as long‑term if held for over 24 months, taxed at 20% with indexation. Short‑term gains are taxed at slab rate.
TDS: there is no US withholding on capital gains, but dividend income (though Netflix does not pay dividends) is 30% in the US, adjustable via DTAA.
DTAA: India‑US treaty prevents double taxation; foreign tax credit can be claimed.
FX component: rupee depreciation may affect taxation and net returns.
PFU taxes: capital gains are included in PFU for reporting foreign investments. Use Form 67 to claim credit.
Always consult your tax advisor.
ETFs: Index funds like Nasdaq‑100 include Netflix.
Mutual funds: some offshore or global funds hold Netflix.
Platform‑based fractional models: App-based services offer an opportunity to invest in the Netflix stock.
Derivatives: Some brokers offer US stock futures and options, but these require advanced experience.
These routes reduce direct currency risk and often have RIA funds or custodian investors.
Start small, especially with high valuations.
Use fractional shares to diversify across US names.
Track earnings & subscriber metrics, now shifted to revenue guidance.
Watch currency trends—a weak rupee boosts returns.
Understand strategy shifts: price hikes, ad‑tier, game & password monetisation.
Maintain allocation discipline, avoid excessive concentration.
Plan tax, track holding period and file foreign income correctly.
Stay updated on US regulations, stock-by-stock scrutiny or foreign investment rules.
About the company
Netflix, Inc. began in 1997 in California as a DVD-by-mail rental service. By 2007, it had shifted to streaming, introducing on-demand videos worldwide.hlIt now serves over 301.6million paid subscribers in more than 190 countries, including India, offering films, TV shows, documentaries, games and live sports.As of June 10, 2025, Netflix holds a market capitalisation of around US$512billion (₹42lakhCr equivalent)—a mega-cap in media. It is listed on NASDAQ under the ticker “NFLX” and features in the S&P500 and Nasdaq‑100. Co‑CEOs Greg Peters and Ted Sarandos serve under executive chair Reed Hastings.
The business model relies on recurring subscription fees, attractive content investment, and innovation in ad‑tier services and password monetisation. It is targeting US $1trillion market cap by 2030 source. Key recent developments include record subscriber additions, introduction of advertising tiers, global price hikes, live sports rights, mobile games and redesigned interfaces.
Details about the Netflix stock
Investing in Netflix stock offers compelling reasons:1. Content leadership
Netflix continues to lead in original and licensed content, expanding in genres and languages tailored for global audiences, including India. This drives subscriber growth and retention.
2. Strong financial performance
In Q12025, Netflix reported US$10.54billion revenue, up +12% YoY, with net income of US$2.89billion (Earnings per share US$6.61). Operating margins reached ~29%, their highest ever.
3. Resilient growth strategy
Even amid global headwinds, Netflix remains tariff-resistant, gaining ~10% in 2025 while the broader market declined. Its mix of subscription, advertising, gamification and live sports supports revenue diversification.
4. Ambitions for trillion-dollar valuation By 2030, Netflix plans to double revenue, monetise password sharing, raise prices, expand ads and live sports to justify its US$1trillion ambition source.
5. Defensive during downturns
With strong subscription cash flows and affordable entertainment, Netflix has acted as a recession-resistant stock.
6. Equity upside
Trading at high P/E (~58x) and with global exposure, investing in Netflix offers both growth potential and premium valuation. Investors should balance patience and portfolio allocation.
Step‑by‑step guide to buying Netflix stocks in India
Here is how Indian investors can buy Netflix stock:Step 1: choose a brokerage platform
Choose a SEBI‑registered broker that provides international trading access. Consider ease, fees (both brokerage and custody) and currency conversion charges. Various platforms support fractional share purchases of Netflix, which is helpful given its US$1,200+ per share price. A secure, user-friendly app with live support simplifies investing in Netflix.Step 2: open a trading and demat account
You need to open an international trading, Demat and often a linked US or forex account. You must provide PAN, Aadhaar and KYC documents. Account activation generally takes minutes to days depending on the broker. After activation, your platform will show the Netflix ticker (NFLX) and allow buy/sell.Step 3: fund your account
Transfer funds using Liberalised Remittance Scheme (LRS), up to US$250,000 per financial year. Broker may provide its own forex account. Check currency rates and transfer time, which can impact transaction cost. Platforms may hold funds until conversion to USD.\Step 4: research Netflix stock
Analyse key fundamentals: market cap (~US$512billion), P/E (~58x), earnings per share (US$21.15 diluted). Review company reports, Q1 performance, subscriber growth records, and strategic initiatives. Consider valuations and competition from Disney+, Amazon and others. Use broker tools and third-party reports for clarity.Step 5: place a buy order
Once funded, search for “NFLX” and choose order type—market or limit. For fractional orders, specify dollar or share quantity. The broker executes once the US market opens (typically 7.30pm to 2.30am IST). Confirm execution and track via your portfolio dashboard.Step 6: monitor your investment
Track quarterly earnings, news, Netflix’s US$1trillion strategy, subscriber trends and content releases. Listen for updates on price, ads, games, password policy and live sports. Use broker alerts and maintain portfolio review routines. Rebalance based on valuation or portfolio goals.Features of investing in Netflix
Main advantages are:Global brand & reach: 300+ million subscribers in 190 countries, content in 50+ languages .
Growth & profitability: 12% YoY revenue growth, US$2.89b profit and record 29% margin.
Defensive play: gains +10% in 2025 while peers declined; grows even in downturns.
Diversified revenue streams: subscription fees, ad tier, password monetisation, live sports, and mobile games provide resilience.
Market leader: among the largest media firms, well-positioned in growth categories with high entry barriers.
Risks of investing in Netflix
Some risks include:High valuation: trading at P/E ~58x, leaving limited margin for error.
Intense competition: Disney+, Amazon, local services vying for market share and costing heavily.
Slowing subscriber growth: recent reporting reflects slowing global additions.
Execution risk: newer efforts in ads, games, and sports may not deliver as expected.
Currency risk: INR‑USD fluctuations can enhance or diminish rupee returns.
Regulatory uncertainty: US or India regulations, geopolitical tensions may affect cross-border trading or content.
Tax implications for Indian investors
Key prevailing obligations are:capital gains tax: US stocks are treated as long‑term if held for over 24 months, taxed at 20% with indexation. Short‑term gains are taxed at slab rate.
TDS: there is no US withholding on capital gains, but dividend income (though Netflix does not pay dividends) is 30% in the US, adjustable via DTAA.
DTAA: India‑US treaty prevents double taxation; foreign tax credit can be claimed.
FX component: rupee depreciation may affect taxation and net returns.
PFU taxes: capital gains are included in PFU for reporting foreign investments. Use Form 67 to claim credit.
Always consult your tax advisor.
Other ways to buy Netflix shares in India
Indirect investment paths:ETFs: Index funds like Nasdaq‑100 include Netflix.
Mutual funds: some offshore or global funds hold Netflix.
Platform‑based fractional models: App-based services offer an opportunity to invest in the Netflix stock.
Derivatives: Some brokers offer US stock futures and options, but these require advanced experience.
These routes reduce direct currency risk and often have RIA funds or custodian investors.
How to start investing in Netflix?
To make informed decisions:Start small, especially with high valuations.
Use fractional shares to diversify across US names.
Track earnings & subscriber metrics, now shifted to revenue guidance.
Watch currency trends—a weak rupee boosts returns.
Understand strategy shifts: price hikes, ad‑tier, game & password monetisation.
Maintain allocation discipline, avoid excessive concentration.
Plan tax, track holding period and file foreign income correctly.
Stay updated on US regulations, stock-by-stock scrutiny or foreign investment rules.
