Netflix Stock Split: What Investors Need to Know

Netflix has had a fantastic year so far, with its stock price up 82%, thanks to successful strategies in advertising and preventing password sharing. This growth has left its competitors in the dust and created excitement among investors. Recently, Netflix’s stock price has been climbing even higher due to positive reactions to events like the Jake Paul-Mike Tyson fight, leading some to speculate that Netflix may expand into live sports and events.

With Netflix’s share price soaring and closing at $883.85 on Nov. 20, some are wondering if a stock split could be in the cards. Stock splits happen when companies divide their existing shares into smaller units, making them more affordable for individual investors. Netflix has a history of splitting its stock, having done so twice in the past. In 2004, the company enacted a 2-for-1 split, and in 2015, they did a 7-for-1 split when the share price was around $700.

Stock splits can generate a buzz around a company, as they often signal growth and potential for future success. While a split doesn’t change the fundamentals of a stock, it can make individual shares more accessible to retail investors. Companies like Nvidia have seen positive reactions from investors after announcing stock splits. Netflix’s recent momentum and focus on advertising and live sports make a stock split a plausible next step for the company.

Despite management not addressing the possibility of a stock split yet, the company’s strong performance and potential for further growth could lead them to consider it. Ultimately, investors should weigh Netflix’s growth opportunities and valuation when making investment decisions. While a stock split may not alter the core fundamentals of the company, it could attract more attention to Netflix and potentially lead to further stock price growth.