:max_bytes(150000):strip_icc()/GettyImages-2178013701-00dfe50a746e44e8b56b2f606a9a1fb3.jpg "Netflix Stock Is Set for a 10-for-1 Split. What You Need To Know")
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Key Takeaways
- Netflix said it plans to undergo a 10-for-1 stock split that will take effect after the closing bell on Friday, Nov. 14.
- The move could make its stock price, which recently hovered above $1,120, more accessible to a wider range of investors.
Netflix said it plans to undergo a 10-for-1 stock split, in a move that could make its stock more accessible to a wider range of investors.
The split, which is set to take place after the closing bell on Friday, Nov. 14, means shareholders will receive nine new Netflix (NFLX) shares for every one they owned heading into the split. Their overall stake in the company won’t change because of it, but each share will subsequently be worth about 10% of its price before the split took effect. Trading at the split-adjusted price is scheduled to begin when the market opens on Monday, Nov. 17.
Netflix said the change is meant to “reset the market price of the Company’s common stock to a range that will be more accessible to employees who participate in the Company’s stock option program.” That could also make it more attractive to investors outside the company who may have shied away from the stock at its recent levels after a run-up this year.
Shares of Netflix were up over 3% around $1,123 in recent trading, bringing their year-to-date gains to about 26%, outpacing the broader S&P 500’s roughly 16% over the same period.
Why This Is Significant
Netflix’s 10-for-1 stock split follows similar moves by large-cap tech companies looking to make their shares more affordable to employees and retail investors. Stock splits can help boost liquidity and make trading easier for buyers and sellers.
Though Netflix shares took a hit earlier this month after the company’s third-quarter earnings missed analysts’ estimates due to a one-time tax expense in Brazil, it’s been a strong year for the streaming giant’s stock, which has benefited from a well-received slate of content and expectations of continued growth, along with the perception that it’s relatively insulated from shifting tariff policies.
The decision to undergo a split, typically considered a positive signal by investors, could also point to confidence in further gains ahead for Netflix. By contrast, reverse stock splits—which consolidate shares to raise the price of each individual share—are often taken as a sign of concern about a marked decline in the price of a stock.
