Netflix's Long-Overdue Stock Split Just Dropped – Here's Why Wall Street's Going Wild

Netflix just did what the market’s been waiting for: announced a 10-for-1 stock split, effective Nov. 14. Share price will tank from ~$1,130 to around $113 – basically making it more affordable for retail investors who can’t buy fractional shares.

This isn’t Netflix’s first rodeo. The streamer split 2-for-1 back in 2004, then 7-for-1 in 2015. Come November, an original IPO share will have morphed into 140 shares. Pretty wild.

Why Now? Because Netflix Actually Deserves It

Here’s the thing: forward splits only happen when companies are crushing it. Struggling businesses do reverse splits (yikes). Netflix announcing this split signals serious confidence.

The data backs it up:

• Only profitable streaming giant among major competitors with recurring profitability for years
• Ad tier is printing money: 94M subscribers on ad-supported plans as of May
• International growth hitting stride: 20% sales growth in Latin America & Asia-Pacific, 15% in EMEA last quarter
• Free cash flow about to rip as international investments finally mature
• Content moat intact: Original hits like Stranger Things and Squid Game keep subscribers sticky

The Broader Stock-Split Trend

Netflix’s move caps off a wild year for splits. Earlier in 2025, non-tech companies led the charge:

• O’Reilly Automotive (ORLY): 15-for-1 approved
• Fastenal (FAST): 2-for-1 completed – their ninth split since 1987
• Interactive Brokers (IBKR): 4-for-1 completed – first-ever split

But Netflix is the true blockbuster announcement – the mega-cap everyone was waiting for. Think Nvidia and Broadcom’s 10-for-1 splits in 2024, but for streaming.

The Retail Investor Play

One key metric: Netflix’s non-institutional ownership hit 20% as of Oct. 30, and it’s been climbing. That signals serious retail interest. Lower nominal prices = more retail participation = more stock splits announced. It’s a flywheel.

Why This Actually Matters

Historically, forward-split stocks crush the S&P 500 in the 12 months post-announcement (average outperformance since 1980). It’s not magic – it’s usually because companies confident enough to split are doing something right operationally.

For Netflix, the split reads as: “We’re profitable, growing internationally, monetizing ads, and the moat is real. Retail investors deserve easier access to this.”