LOS ANGELES, United States — Streaming powerhouse Netflix on Thursday announced a ten-for-one stock split, a move aimed at making its shares more affordable for retail investors and employees participating in its stock option program.
Under the plan, shareholders will receive nine additional shares for every one held after markets close on November 10, with trading on a split-adjusted basis set to begin on November 17.
Netflix, whose market capitalization stood at $461.44 billion as of Thursday’s close, said the split would enhance accessibility without altering the company’s underlying value.
Its shares surged about 3% to $1,123.49 in extended trading following the announcement.
The company’s stock has soared over 360% in the past three years, far outpacing media rivals Walt Disney and Comcast, buoyed by hit releases such as the animated feature KPop Demon Hunters.
This marks Netflix’s third stock split since going public in 2002. The most recent one in 2019 reduced the per-share price from about $700 to $100, broadening investor participation at the time.
Industry analysts view the latest move as largely symbolic, designed to encourage small investors without affecting institutional sentiment.
“A split will make it easier for small investors to buy in, but it doesn’t change anything about the company or its attractiveness to institutional investors who drive the market,” said Ross Benes, senior analyst at EMarketer.
Despite its surging valuation, Netflix trades at a forward price-to-earnings (P/E) ratio of 45.96, significantly higher than Disney’s 17.54 and Comcast’s 6.89, underscoring investors’ confidence in its growth trajectory and earnings potential.
The announcement reaffirms Netflix’s continued dominance in the streaming industry, as it seeks to balance investor accessibility with long-term market performance amid intensifying competition for global audiences.
