Catenaa, Friday, October 31, 2025- Netflix on Thursday announced it will split its stock 10-for-1, meaning shareholders will receive 10 shares for every share they currently own.
Netflix stock, as a result, will trade at one-tenth of its current price. Shares closed at $1,089 on Thursday. The stock was up by 2% at $1,105 on Friday morning.
In a statement, the company said the move was being made to “reset the market price of the Company’s common stock to a range that will be more accessible to employees who participate in the Company’s stock option program.”
The company said its stock will begin trading on a split-adjusted basis on November 17. If the stock were to be split right now, for instance, it would trade around $110 per share.
The per-share price of any company’s stock is the result of simple arithmetic — the company’s market value divided by the number of shares outstanding.
In theory, any company’s stock can be at any price, and that price would have no bearing on the firm’s broader value.
But some academic research has suggested that shares outperform following the announcement of a stock split, indicating that investors perceive management’s announcement of the split as conveying meaningful information.
Thursday’s announcement marks the third time that Netflix has split its stock, having announced a 7-for-1 stock split in 2015 and a 2-for-1 split in 2004.
Since its IPO in 2002, Netflix stock has gained over 100,000%.
