Stock Split Watch: Is Netflix Next?

Netflix, known for revolutionizing the way we watch TV, may not be the first stock that comes to mind when you think of big tech companies. Once part of the FAANG group, which included other tech behemoths like Facebook and Amazon, Netflix now stands alone as the only member not in the “Magnificent Seven,” the elite tech stock group. But before you dismiss Netflix, take a closer look. This streaming giant is on fire this year, with its stock soaring by 82%. How did Netflix achieve this? Well, the company’s push in advertising and cracking down on password sharing have paid off big time, leaving its traditional media rivals in the dust.

Just recently, Netflix saw another boost in its stock price after the Jake Paul-Mike Tyson fight and speculation that the company may dive deeper into live sports and events. With its share price reaching new heights, closing at $883.85 on Nov. 20, Netflix is now one of the highest-priced stocks on the S&P 500. This success has sparked talk of a potential stock split, a move that companies make to make their shares more accessible to individual investors and employees, among other things.

Now, let’s dive into Netflix’s history with stock splits. The company has split its stock twice in the past: a 2-for-1 split in 2004 and a 7-for-1 split in 2015. Both times, Netflix opted for a split rather than let its share price skyrocket. Given Netflix’s current growth trajectory and excitement around its advertising and live sports ventures, a stock split might just be on the horizon.

While a stock split won’t fundamentally change the company, it could generate more buzz around Netflix and attract new investors. Historically, stocks tend to perform well after a split announcement, and with Netflix’s upward momentum, a split could be a positive move. Keep in mind that Netflix management hasn’t officially addressed a potential split, but with the stock price hitting new milestones, it’s a possibility worth considering.

When deciding whether to invest in Netflix, focus on the company’s growth potential and valuation rather than just the prospect of a stock split. A split could be a bonus, creating more opportunities for growth. As always, it’s essential to do your research and consider all factors before making any investment decisions.