Understanding Netflix Stock Split: What It Means for Investors

Streaming giant Netflix (NFLX) has officially announced a 10-for-1 stock split. This decision follows a remarkable rise in stock value, which exceeded $1,000 per share for the first time in February 2025. As a result of the split, Netflix will lower its share price to approximately $110, making it more accessible to individual investors.

Stock Split Details

Shareholders will benefit from the stock split as they will receive nine additional shares for every share they hold on the record date of November 10. Trading on a split-adjusted basis will commence on November 17. This change comes as Netflix ranks as the 12th highest-priced stock in the Morningstar US Market Index.

Market Insights

According to Matthew Dolgin, a senior analyst at Morningstar, the high price of Netflix shares may have skewed ownership towards institutional investors rather than individual ones. The anticipated reduction in stock price post-split may encourage more retail investors to enter the market.

Understanding Stock Splits

A stock split divides existing shares into multiple new ones. While this increases the total number of outstanding shares, the overall market capitalization remains unchanged. Companies often resort to stock splits when their stock prices are prohibitively high for individual investors. This strategy can enhance liquidity and attract new buyers.

Impact on Investors

Dolgin notes that the stock split will not alter Netflix’s fundamental value. The fair value estimate will adjust from $770 to $77 as a direct result of the split. Despite this mechanical adjustment, Dolgin suggests the split could create upward pressure on stock prices in the short term, especially as shares become more accessible to retail buyers.

Long-Term Outlook

While the stock split may offer a temporary boost, analysts caution that fundamental factors will ultimately drive the stock’s value. Currently, Netflix maintains a Morningstar Rating of 2 stars and is trading at a premium of 45% to its estimated fair value.

Recent Stock Split Trends

Netflix’s announcement marks it as the second major company to initiate a stock split in the fourth quarter of 2025. ServiceNow (NOW) is set to approve a five-for-one stock split in December. In 2024, other significant stock splits included:

• Broadcom (AVGO) – 10-for-1 split
• Nvidia (NVDA) – 10-for-1 split
• Walmart (WMT) – 3-for-1 split
• Chipotle (CMG) – 50-for-1 split

These trends indicate a renewed interest in stock splits as companies explore strategies to enhance share accessibility for individual investors.