Netflix announced a 10-for-1 forward stock split, giving shareholders nine extra shares for each share held after the market closes on November 10. Trading of the new split-adjusted shares will begin on November 17.
The decision is designed to make Netflix’s shares more accessible to retail investors and employees in its stock-option programme, especially as its per-share price has soared past $1,000.
This is Netflix’s third major split since its 2002 IPO, with its last one in 2019.
Following the announcement, Netflix’s shares jumped around 3% in after-hours trading, reflecting investor optimism about increased accessibility and potential retail investor participation.
Analysts note that while the split does not change Netflix’s fundamentals or valuation, it may improve liquidity and the ease with which small investors can buy whole shares.
