Key Stats for Netflix Stock
- 1-day Price Change for Netflix stock: 3%
- $NFLX Share Price as of Oct. 31: $1,119
- 52-Week High: $1,341
- $NFLX Stock Price Target: $1,347
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What Happened?
Netflix (NFLX) stock surged almost 3% on Friday after the streaming giant announced a 10-for-1 stock split, pushing shares to near all-time highs. The split will take effect after the closing bell on Friday, November 14, with trading at the new split-adjusted price beginning Monday, November 17.
Under the split, shareholders will receive nine additional shares for every one share they currently own. While this doesn’t change anyone’s total stake in the company, it reduces the price per share to roughly 10% of its current value.
Netflix said the move is designed to make shares more accessible to employees in the company’s stock option program and attract new retail investors who may have been priced out at current levels.
The timing is notable as NFLX stock has climbed 27% this year, significantly outpacing the S&P 500’s 16% gain over the same period.
Netflix has benefited from strong content performance and continued subscriber growth, even as it faces increased competition in the streaming space.
Netflix’s third-quarter results showed revenue climbing 17% to $11.51 billion, right in line with analyst expectations.
However, earnings per share missed estimates due to a one-time $619 million tax charge related to a dispute with Brazilian tax authorities.
Despite this temporary hit, the company exceeded its forecast for operating income when excluding the Brazil tax matter.
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What the Market Is Telling Us About NFLX Stock
The market’s enthusiastic response to the stock split announcement suggests investors view Netflix as positioned for continued growth.
Stock splits are typically seen as a positive signal because companies usually don’t split their shares unless they’re confident about future appreciation.
NFLX stock has proven relatively resilient compared to other tech names this year, partly because the streaming business model is seen as less vulnerable to tariff concerns that have weighed on other sectors.
The company’s Q3 performance showed engagement hitting record levels in key markets, with Netflix capturing 8.6% of TV viewing time in the United States and 9.4% in the U.K.
Looking ahead, Netflix management expressed confidence about the business trajectory during its recent earnings call.
Netflix more than doubled its ad revenue this year and continues expanding its live events programming, including high-profile boxing matches and upcoming NFL games on Christmas Day. These initiatives should drive both subscriber growth and higher engagement.
For long-term investors, the stock split makes NFLX stock more accessible without changing the fundamental investment thesis.
With shares trading near all-time highs and the company demonstrating consistent execution, the split could attract a new wave of retail investors who were previously deterred by the four-figure share price.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
