Netflix on Thursday announced a ten-for-one stock split, aiming to make its shares more affordable for retail investors and employees. The company said it would issue nine additional shares for each share held after the market closes on November 10.
According to Netflix, the stock split will also make participation easier for employees under its stock option program. The move reflects the company’s growing confidence in its long-term performance and commitment to shareholder inclusivity.
The streaming giant currently boasts a market capitalization of $461.44 billion as of Thursday’s close. Netflix shares have surged more than 360% over the past three years, outperforming major media competitors such as Walt Disney and Comcast. Following the announcement, the stock rose nearly 3% to $1,123.49 in extended trading.
This will be Netflix’s third stock split since going public in 2002. The last split took place in 2019, when the per-share price dropped from about $700 to $100, making shares more accessible to individual investors.
Industry analysts believe the move could attract smaller investors but note it won’t significantly alter the company’s market dynamics. “A split will make it easier for small investors to buy in, but it doesn’t change the company’s fundamentals or appeal to institutional investors,” said Ross Benes, senior analyst at eMarketer.
Currently, Netflix’s forward price-to-earnings (P/E) ratio stands at 45.96, far higher than Walt Disney’s 17.54 and Comcast’s 6.89 — signaling continued investor confidence in the streaming leader’s growth potential.
With consistent subscriber growth and hit shows like the recent animated success KPop Demon Hunters, Netflix remains one of the most valuable media companies worldwide. The stock split is expected to further enhance market participation while maintaining strong investor interest.
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