Investing is a great way to ensure that you have something to land on even when you lose your job, or if you prefer to retire early. Unfortunately, nothing is free, and you will have to dig deep in your pockets especially when you are going for a stock that is highly valued. Take, for instance, Netflix which announced in January 2019 that it would raise its price by 13-18% for existing and new customers causing its stock to rise by more than 6%. Since launching streaming, Netflix has increased its subscription fees four times, and maybe it is still gambling that its customers will stay hooked to its content. For an investor, with a share price of $363, the Netflix stock may be just too expensive, and one might want to invest in something cheaper but which will still make good returns. Here are five cheaper alternatives to buying Netflix stock.
1. Arista Networks (Ticker symbol: ANET)
Arista Networks has also revolutionized the video entertainment industry by offering us a different mode of how we consume content. The firm has incorporated a cloud-networking platform that is not only bringing in their innovation but is also helping it in setting its own space in the industry and disrupting other giants in large-scale data centers. Ever since it went public in 2014, the company has made its investors quite rich through the shares increasing by four times. Since the market still offers room for growth, Arista Network has a promising future for its investors. The fact that it has acquired Mojo Networks and Metamako could be an indication that this firm is destined for bigger things in the cloud computing industry. Its share price is currently trading at $274.97.
2. Activision Blizzard Inc. (Ticker symbol: ATVI)
For $41.5 per share, you can get to partake in the dividends when you decide to invest in Activision Blizzard. Netflix set the pace in showing that a company which stands out from the rest by opting to deliver original and exclusive content as opposed to being the platform for the intellectual property for other firms, has a greater chance of reaping more significant rewards in terms of dividends. The company has over 350 million customers who log in to its games every month. Besides, it has revenue sources such as advertising which boosts its growth, unlike Netflix. For as long as it can continue producing content that appeals to other customers, this company is destined for higher growth and more returns for investors.
3. Vertex Pharmaceuticals (Ticker symbol: VRTX)
Vertex Pharmaceuticals was established in 1989 and became among the first biotech firms to utilize a clear strategy of rational drug model instead of combinatorial chemistry. It does not have any competition in treating cystic fibrosis and has manufactured drugs namely Orkambi, Symdeko, and Kalydeco, that address the cause while other companies manage the symptoms. It has 34,000 patients approved to take the medication, and it is optimistic the number will soar to reach 44,000. Moreover, it is in the process of making new drugs which it hopes will treat 68,000 patients thereby doubling the current number. With such a monopoly and share price of $185.76, investing in Vertex is a good move for investors.
4. Walt Disney Co. (Ticker symbol: DIS)
Walt Disney has become a name synonymous with the world’s best movies such as the Titanic and other Oscar-winning films. The firm has added more of the best movie productions labels like Pixar Animations, ABC, ESPN, Marvel and many more. Besides, last year, it purchased FOXA adding to its being the owner of America’s favorite programming. At $115, Walt Disney share price is less than half that of Netflix. It will give Netflix even greater competition when it launches its streaming service as it announced, which might turn it into the leading streaming service after a few years.
5. Facebook (Ticker symbol: FB)
Businesses are continually relying on social media platforms to advertise their products. The Facebook stock remains to be bullish even when the share price has undergone depression. The company has continued to have a steady EPS, one of the most used methods by investors apply to gauge the performance of the company. At a share price of $161.89 currently, Facebook will have its investors raking in profits since the future is almost guaranteed that it will be bright.