Netflix, Inc. (NFLX) Announces 10-for-1 Stock Split

Netflix, Inc. (NASDAQ:NFLX) is one of the best stocks to invest in, according to billionaire D.E. Shaw. On October 31, Netflix, Inc. (NASDAQ:NFLX) revealed a 10-for-1 stock split, set to take effect on November 17. Shareholders will receive 10 shares for every one they currently own, reducing the stock’s trading price to roughly one-tenth of its current value. The company said the move aims to make shares more accessible to employees participating in its stock option program.

The announcement comes amid reports that Netflix is exploring a potential bid for Warner Bros. Discovery. This marks the company’s third stock split, following previous splits in 2015 and 2004. While a split doesn’t change a company’s overall value, studies suggest it can boost investor sentiment. Netflix shares have surged over 100,000% since its 2002 IPO.

The same day that is October 31, Erste Group downgraded Netflix from Buy to Hold, citing a slight reduction in the company’s operating margin forecast for 2025. While revenue expectations remain unchanged, the firm pointed to Netflix’s elevated valuation as a factor limiting further upside. Meanwhile, Bernstein’s Laurent Yoon maintained a Buy rating on the stock, keeping the price target at $1,390. The contrasting views reflect differing takes on Netflix’s growth potential and current market positioning.

Netflix, Inc. (NASDAQ:NFLX) is a global streaming service that offers a wide variety of TV shows, movies, anime, and documentaries for a monthly fee. The company initially rented DVDs by mail but pivoted to a subscription-based streaming model in 2007. Today, it’s one of the largest streaming platforms, producing a large amount of its own original content in addition to licensing other films and shows.

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Disclosure: None. This article is originally published at Insider Monkey.