Netflix has plenty of life in it yet – here's how to trade the shares

Netflix still has plenty of scope for growth, says Matthew Partridge, and the shares are reasonably priced. Here's how to play the Netflix share price.

Still from Netflix's Stranger Things
The hit programme Stranger Things could soon spawn a videogame or an app
(Image credit: © Netflix)

This year has been a dismal one for technology stocks, with the tech-heavy US Nasdaq Composite index down by 22% so far. Part of the problem is rising interest rates, which have made investors much less willing to tolerate vague promises from tech companies about future profitability; the cost-of-living crisis and looming recessions in many developed countries have unnerved investors too.

However, some prominent companies have also been grappling with specific problems that have further undermined their share price. One prime example is the video-streaming service Netflix (Nasdaq: NFLX). Its shares have fallen by half this year, and are down by around two-thirds from their peak.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Explore More
Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri