What Happened?
Shares of streaming video giant Netflix (NASDAQ: NFLX) jumped 3.7% in the afternoon session after the company announced a 10-for-1 stock split.
The move was intended to make its shares more accessible to employees participating in the company's stock option program and to retail investors, as the price had topped $1,000. Following the announcement, Netflix shares rose in trading. The company's board of directors approved the split, setting key dates for its execution. Shareholders of record as of November 10, 2025, were set to receive nine extra shares for each one they owned, with the stock expected to begin trading at its new, lower price on November 17, 2025. In other news, it was also reported that Netflix was exploring a potential bid for Warner Bros Discovery's studio and streaming business.
After the initial pop the shares cooled down to $1,124, up 3.3% from previous close.
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What Is The Market Telling Us
Netflix’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 9 days ago when the stock dropped 9.7% on the news that the company reported third-quarter results overshadowed by a large, unexpected tax expense in Brazil, leading to an earnings miss. While revenue grew 17.2% year-over-year to $11.51 billion, meeting forecasts, its earnings per share of $5.87 fell short of analyst estimates. The shortfall stemmed from a one-time tax charge of about $619 million related to an ongoing dispute in Brazil. This unexpected expense was not included in the company's prior forecast and dragged its operating margin down to 28.2%. Although the company stated the tax issue would not materially impact future results, the significant headline profit miss concerned investors. However, looking ahead, guidance was in line with Wall Street forecasts. Despite the initial negative market reaction, some analysts maintained a bullish outlook, with Bank of America reiterating a Buy rating while noting that the stock will be fueled by "continued positive subscriber and earnings momentum in addition to evolving advertising and live opportunities.".
Netflix is up 26.8% since the beginning of the year, but at $1,124 per share, it is still trading 16% below its 52-week high of $1,339 from June 2025. Investors who bought $1,000 worth of Netflix’s shares 5 years ago would now be looking at an investment worth $2,323.
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