Netflix Announces 10-for-1 Stock Split to Boost Accessibility
Netflix (NASDAQ: NFLX) has announced a 10-for-1 stock split, effective November 17, 2025. Shareholders of record on November 10 will receive nine additional shares for every share they currently hold. The additional shares will be distributed on November 14, with trading at the adjusted price set to begin on November 17.
Making Netflix Shares More Accessible
As of Thursday’s close at $1,089 per share, Netflix remains one of only ten S&P 500 companies trading above $1,000 per share. The upcoming stock split will reduce the price per share to approximately $109, without impacting the total value held by shareholders.
This move aims to “reset the market price” to a level that better supports participation in Netflix’s employee stock option program. The decision follows a stellar year for the streaming giant, with shares rising over 40% in 2025.
It’s worth noting that Netflix has previously executed stock splits in 2004 and 2015. While stock splits do not affect the company’s fundamentals—they simply increase the number of shares and lower the individual share price—historical data shows such announcements often boost investor enthusiasm and improve liquidity.
Investor Excitement and Market Impact
Following the split announcement, Netflix shares rose more than 2% in after-hours trading. The stock’s impressive 42% gain this year has been driven by strong subscriber growth and expanding profit margins.
According to data from Bank of America, companies that complete stock splits typically outperform the S&P 500 by more than double during the following year, with average post-split gains of around 25%.
Netflix’s robust earnings growth in 2025 supports this optimism. The company reported a 15% year-over-year revenue increase to $33.1 billion, while earnings per share (EPS) rose 26% to $20.12. Additionally, its operating margin expanded to 31.3% from 27.4% in 2024.
What This Means for Investors
While the stock split itself does not increase Netflix’s overall value, it could attract a broader base of smaller investors by making shares more affordable. Lower share prices often encourage greater employee ownership and can enhance trading volumes.
Notably, many tech leaders—including Apple, Tesla, and Nvidia—have used stock splits to democratize access to their shares. In contrast, Warren Buffett’s Berkshire Hathaway famously opts not to split its stock.
Looking Ahead
Netflix remains a dominant force in the streaming industry, boasting over half a billion global users. Its expanding content offerings and strong profitability position the company well for long-term growth—regardless of share price or stock splits.
As November approaches, investors will be watching closely to see how this stock split influences Netflix’s market dynamics and investor base moving forward.
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