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The streaming behemoth Netflix stock (NASDAQ: NFLX) has sanctioned a 10-for-1 stock split—the second division in ten years—intended to make shares more attainable for retail investors and employees involved in its stock option program. The company has designated November 10 as the record date, with trading adjusted for the split commencing on November 17. Netflix stock has exhibited robust performance, climbing over 23% year-to-date, and surging more than 5x from the lows observed in 2022. So, will the immediate split spur further advancement for Netflix stock?
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Netflix’s Unexpected Post Covid Renaissance
Since the pandemic, Netflix has undergone several significant changes that have solidified its standing in streaming. The company’s enforcement of stricter password sharing policies and the introduction of a lower-priced, ad-supported plan have both proven effective, drawing millions of new users and boosting profit margins. Netflix has previously stated that half of the new users in eligible markets are opting for the ad-supported choice, resulting in robust growth in advertising revenue and enhancing average revenue per user. The paid sharing feature—which charges accounts a fee to add users outside their households—has also delivered positive outcomes.
In 2024 alone, Netflix brought in approximately 40 million subscribers, although it has ceased to disclose subscriber numbers for 2025. Nevertheless, revenue growth has remained strong. The company reported $11.51 billion in revenue for Q3 2025, a 17% increase from the previous year. Netflix continues to outpace competitors in the streaming arena, now boasting a market capitalization exceeding $450 billion, surpassing Disney, Comcast, and Warner Bros combined. The near term still holds exciting developments. Netflix’s upcoming collaboration with Spotify to introduce video podcasts to the platform in 2026 demonstrates the company’s initiative to diversify its content beyond just films and series.
How The Split Helps
While stock splits do not fundamentally change a company’s outlook, they typically instigate a rise in stock prices following the announcement, particularly for high-interest stocks. This was evident during Nvidia’s recent split and Tesla’s first stock split around the Covid-19 pandemic. Furthermore, stocks tend to outperform in the aftermath of a split for two reasons: they improve accessibility for smaller investors, thereby increasing demand and trading volumes. In Netflix’s scenario, the price of a single share would decrease to around $110 from its current $1,100, making it a more attractive amount for retail investors. Additionally, splits also convey that management is confident in the company’s future and believes that the stock may continue to appreciate in the long term.
NFLX In The Dow?
There is also speculation regarding Netflix’s potential addition to the Dow Jones Industrial Average (DJIA). The Dow is a price-weighted index, and this characteristic has rendered Netflix’s four-digit share price a significant hurdle to inclusion—the median stock within the index trades at approximately $250, while the highest-priced stock (Goldman Sachs) trades for under $800. Prior to the split, Netflix’s share price would have disproportionately influenced its potential addition to the Dow.
By reducing its share price tenfold, Netflix is now more aligned with the Dow’s price structure. Prominent companies like Amazon and Sherwin-Williams conducted stock splits before their entry into the Dow, effectively lowering their share prices to better fit the Dow’s price structure. While its inclusion is not guaranteed, being added to the DJIA could significantly enhance demand from passive index funds, attract increased institutional ownership, and solidify Netflix’s reputation as a blue-chip entity in the U.S. stock market.
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