Streaming giant Netflix NFLX announced a 10-for-1 stock split after a strong rally in 2025 that pushed shares above $1,000 for the first time in February. Netflix ranks as the 12th-highest-priced stock in the Morningstar US Market Index.
After the close of trading on Nov.14, shareholders will receive nine additional shares for every share held on the record date, Nov. 10. Shares will begin trading on a split-adjusted basis on Nov. 17.
Morningstar senior analyst Matthew Dolgin says Netflix’s strong brand appeal makes the stock attractive to individual investors, but some may have been deterred by its high price. “I’d guess that the high dollar price of the stock has led to a greater institutional skew than it would be otherwise,” he says. The split will bring the price down from around $1,100 per share to near $110.
Netflix has had two prior stock splits—a seven-for-one split in 2015 and a two-for-one split in 2004.
Why Do Companies Split Their Stock?
A stock split means each share is divided into multiple new ones. While this increases the number of outstanding shares, it does not change a stock’s overall value. Companies tend to make such moves when their stock’s price has risen to the point where it might be difficult for individual investors to purchase shares.
Having a larger number of cheaper shares to attract more buyers can help improve liquidity, and lower prices can make shares look more attractive, even though the company’s underlying value hasn’t changed.
What Does Netflix’s Stock Split Mean for Investors?
Dolgin says the split won’t alter Netflix’s fundamentals. Its fair value estimate will shift to $77 per share from $770, a purely mechanical division in line with the 10-for-1 split. Dolgin recently bumped up the stock’s fair value estimate from $750 following the firm’s third-quarter earnings.
Dolgin notes that Netflix’s stock could get a short-term lift after the split. “I’d expect the split would apply upward pressure to the stock because it will become more accessible to retail buyers, especially through call options, which also result in more demand,” he explains. Over the long term, though, “None of this will supersede fundamentals as news and results occur, and we still believe the stock is fundamentally overvalued and should ultimately trade lower.”
Netflix has a Morningstar Rating of 2 stars, trading at a 45% premium to its fair value estimate.
Other Recent Stock Splits
After a quiet first three quarters for stock splits in 2025, Netflix becomes the second major company to announce the move in the fourth quarter. ServiceNow NOW announced a five-for-one split, to be approved by the company’s board in December.
Previously, 2024 saw a handful of high-profile splits: Broadcom AVGO and Nvidia NVDA each went 10-for-1, Walmart WMT went three-for-one, and Chipotle CMG enacted a 50-for-1 split (one of the biggest in the history of the New York Stock Exchange).
