TLDR

Netflix announced a 10-for-1 stock split effective November 17, 2025.
Shareholders on record as of November 10 will receive nine additional shares for each share they own.
The stock climbed 2% in after-hours trading and has gained 42% so far in 2025.
The split aims to make shares more accessible to employees and retail investors by lowering the per-share price from around $1,089 to roughly $109.
The company’s fundamentals remain unchanged, with total shareholder value staying the same.

Netflix has announced a 10-for-1 stock split that will drop its share price from around $1,089 to roughly $109. The move is designed to make the stock more accessible to employees and retail investors.

Netflix, Inc., NFLX

The split becomes effective November 17, 2025. Shareholders who own stock as of the record date on November 10 will receive nine additional shares for every share they hold.

The new shares will be distributed on November 14. Trading at the adjusted price begins three days later.

Netflix said the split will “reset the market price” to support better participation in its employee stock option program. The company has done this twice before, in 2004 and 2015.

At Thursday’s closing price of $1,089, Netflix is one of only ten companies in the S&P 500 trading above $1,000 per share. That puts it in rare company alongside stocks like Berkshire Hathaway and NVR.

Stock splits don’t change a company’s fundamentals or total market value. They simply increase the number of shares outstanding while decreasing the price per share proportionally.

Think of it like cutting a pizza into more slices. You have more pieces, but the same amount of pizza.

Why Companies Split Stocks

The main reason is accessibility. A lower share price makes it easier for smaller investors to buy in without needing fractional shares.

It also helps with employee compensation programs. Stock options become more flexible when share prices are lower.

Some research suggests splits can boost investor enthusiasm. Bank of America data shows companies that complete splits typically outperform the S&P 500 by more than double over the following year.

The firm’s analysis found average post-split gains of 25%. Whether that’s correlation or causation remains debatable.

Netflix shares rose more than 2% in after-hours trading following the announcement. The stock has climbed 42% so far in 2025.

Strong Financial Performance

The streaming company has posted solid numbers this year. Revenue increased 15% year over year to $33.1 billion.

Earnings per share jumped 26% to $20.12. Operating margin expanded to 31.3% from 27.4% in 2024.

Netflix now serves over half a billion users globally. The company has focused on expanding its content library while improving profitability.

Tech giants like Apple, Tesla, and Nvidia have all executed stock splits in recent years. The practice has become more common as share prices climb higher.

Warren Buffett famously refuses to split Berkshire Hathaway’s Class A shares, which trade above $600,000. But most companies prefer to keep their stock price in a more manageable range.

Netflix’s split won’t make individual shareholders richer overnight. The total value of their holdings stays the same.

But it could attract new buyers who previously found the four-figure share price intimidating. Lower prices often lead to increased trading volume and broader ownership.

The post Netflix (NFLX) Stock: Streaming Company Announces 10-for-1 Split to Lower Share Price appeared first on Blockonomi.

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Filed under: Bitcoin - @ October 31, 2025 12:22 pm