Netflix’s 10-for-1 Stock Split Takes Effect as Shares Begin Trading at Just $110
Netflix Stock: Netflix’s long-awaited 10-for-1 stock split has officially gone into effect, instantly transforming one of Wall Street’s priciest tech stocks into a far more accessible investment for millions of retail traders. The split became operational after the closing bell on November 14, and by Monday morning the new share price reflected the adjustment, with Netflix stock trading around $110.70 in premarket activity. Before the split, the stock had closed at $1,112.17, demonstrating just how dramatically the price has been reduced without changing the company’s overall market value.
After the split, Netflix now has over 4.24 billion outstanding shares, compared to just 423 million previously. The move doesn’t alter the company’s fundamentals, but it does reshape how investors interact with the stock. A lower share price often sparks increased trading volume and makes high-growth tech companies more appealing to younger and first-time investors who previously couldn’t afford four-figure share prices. As analysts frequently remind investors, a stock split doesn’t change the size of the “pie”—it merely divides it into more slices.
The timing of the split comes during a landmark year for Netflix. The streaming giant has defied expectations with strong subscriber growth, expanding profit margins, and new revenue streams such as its fast-growing ad-supported plan. Netflix’s financial performance has improved dramatically: while the company earned only $187 million in net income back in 2016, it is now on track to generate nearly $10 billion in profit this year. The split-adjusted price, therefore, is more symbolic than financial, but it underscores just how much stronger Netflix has become over the past decade.
Despite the reduced share price, Netflix remains a premium-valued stock, trading around 35 times forward earnings, but investors see this as a justified premium given the company’s momentum and upcoming catalysts. In recent weeks, Netflix has attracted significant attention with Guillermo del Toro’s highly praised adaptation of Frankenstein, alongside returning franchise favorites such as Emily in Paris, The Witcher, and Nobody Wants This. Even more buzzworthy is Netflix’s upcoming NFL Christmas Day doubleheader, featuring major matchups such as the Dallas Cowboys vs. Washington Commanders and the Detroit Lions vs. Minnesota Vikings, signaling the company’s growing push into live sports—a lucrative field traditionally reserved for cable networks.
Analysts remain optimistic about Netflix’s future, projecting 11% average annual revenue growth over the next five years, supported by stronger global retention, higher engagement levels, and increased monetization through advertising. Executives have laid out bold plans to push Netflix toward a $1 trillion market cap by 2030, more than doubling its current valuation and placing it in the same league as tech titans like Apple and Microsoft. The company’s consistent ability to navigate competition, reshape viewer habits, and reinvent its revenue model has strengthened investor confidence at a time when many streaming rivals are struggling.
Even so, not all market analysts believe Netflix is the top buy right now. The Motley Fool’s Stock Advisor team—known for historically successful early calls on companies such as Netflix in 2004 and Nvidia in 2005—did not include NFLX in its newest list of the “10 Best Stocks to Buy Now.” Still, Netflix’s blend of short-term momentum and long-term opportunity makes it one of the most compelling tech stories of 2024, especially for investors who were previously priced out of the stock. With the split now complete, more investors than ever can participate in Netflix’s next chapter.
ALSO READ – How Generative AI Is Revolutionizing Banking in USA: Personalization, Security, and Efficiency in 2025
