Streaming video service Netflix will conduct a 10-to-1 split of its common stock. Such a move was approved by the company's board of directors, according to a statement on its website.
Details
The securities exchange will affect all Netflix shareholders as of the close of trading on Monday, November 10. They will receive nine additional shares of the streaming service after the close of the exchanges on Friday, November 14, to each additional share they owned as of November 10. The first trading after the split will take place on Monday, November 17.
The stock split is being done to "reset" the market value of the common stock to a range that will be more affordable for employees participating in the stock option program, the company said. The move doesn't change any of Netflix's fundamentals, but it could make the pricey stock more accessible to retail investors, CNBC writes. Essentially, each shareholder will receive more securities at a lower price, and the total value of the stake will not change, the channel added.
This is Netflix's third stock split in the company's history, Bloomberg noted. It did a 7-to-1 split in July 2015 and a 2-to-1 split in 2004.
The split could boost Netflix's valuation, which has sagged 19% from its June high, Bloomberg Intelligence analyst Gita Ranganathan wrote. "Improved fundamentals, backed by strong ad growth, robust pricing and high [audience] engagement, will be a more compelling reason for multiples to rise," she said.
What about the stock
Quotes Netflix rose more than 3% in extended trading on October 30. The main session ended with a decrease of 1.04% - to $1089. The current record of streaming securities at the close is $1339.13 - it was set on June 30. Netflix is now one of only ten companies in the S&P 500 index with a stock price above $1,000, Bloomberg noted.
Netflix's stock is now worth 22% more than it was at the beginning of 2025. They have 53 ratings from analysts, and most advise buy: 32 Buy ratings and six Overweight ("above market"), MarketWatch shows. Another 13 analysts recommend Hold, while two recommend Sell (one Sell and one Underweight). The average target price of $1366.53 implies a 25% upside to the Oct. 30 close.
This article was AI-translated and verified by a human editor
