Netflix stock split 2025: History, timeline and meaning for investors
By Michael Grothaus | Published: 2025-10-31 12:24:00 | Source: Fast Company – news
As of yesterday’s market close, Netflix is the only major tech company whose stock is trading in the four figures, but that will soon change.
The streaming TV giant, whose shares closed at $1,089 on Thursday, announced it will begin a stock split next month. This would cause the stock price of the stock to fall significantly, although it would not change the fundamental value of the company.
Here’s what you need to know about the upcoming Netflix stock split.
What is a stock split?
A stock split occurs when a company decides to split a number of its existing shares in order to create new shares – hence the term stock split.
The stock can be divided on any factor the company wants. For example, in a 2-for-1 stock split, for every share of stock previously split, there will be two shares after the split. Or in the case of a 100-for-1 stock split, for every share previously split, there will be an additional 99 shares after the split.
However, because new shares are created in a stock split, the value of the stock is diluted by an amount proportional to the split.
Divide the stock of fictitious Company XYZ 100 to 1. If Company
However, even though Company XYZ’s stock price is now 100 times cheaper, the company itself is worth no less. The value of a company – its market capitalization – is determined by adding the total value of all its shares.
How much is the Netflix stock split?
Netflix said it would Splitting its shares By 10 to 1 next month. This means that for every share of Netflix (Nasdaq: NFLX) that exists today, there will be nine more shares of NFLX after the split.
Netflix is the only major company to have split its stock in recent years.
In 2024, Walmart split its stock 3-for-1. In 2022, Amazon split its stock 20-for-1, and Tesla split its stock 3-for-1. In 2020, Apple split its stock 4-for-1.
As recently as this week, there were rumors that Palantir Technologies may be splitting its stock soon.
When is Netflix stock split?
There are several dates to consider when it comes to the upcoming Netflix stock split.
The most important day is Monday, November 17, 2025. This is when NFLX shares will begin trading at their new post-split price on the NASDAQ. On this day, there will be 10 times as many NFLX shares as there are today.
Another important date is Friday, November 14, 2025. This is the day on which each registered shareholder will receive an additional nine shares for every share of Netflix they own as of the Record Date. They will receive these nine additional shares after the markets close on November 14.
The last date to remember is Monday 10 November 2025. This is the “record date”. Only shareholders who own NFLX shares after the market close on this date will receive an additional nine shares on November 14 for every share they own after the market close on the 10th.
What does this mean for investors and Netflix’s stock price?
Netflix’s 10-for-1 stock split means that by Monday, November 17, NFLX shares will be trading at 10 times lower than their closing price on Friday, November 14.
However, as shown above, this does not mean that Netflix will be worth 10 times less, because there will also be 10 times as many shares in existence.
This also does not mean that registered investors will see the overall value of their NFLX shares decline. Although the price of an individual share will be 10 times lower, registered investors will also have 10 times the number of shares they previously owned.
So why is Netflix splitting its stock?
Stock splits have no impact on the underlying finances or valuation of the company
But stock splits can have a strong psychological impact on investors, especially individual investors. Large institutional investors, such as investment banks and hedge funds, buy stocks in dollar amounts – for example, $5 million or $100 million worth of stock in one company at a time.
But retail investors often buy stocks based on the price of an individual stock. A single share price of more than $1,000 often puts that stock out of reach of retail investors, who may have a few hundred dollars to invest each month.
By artificially lowering its stock price through a stock split, a company can make its stock more attractive and available to retail investors, which can actually help push up the stock price as more people buy the stock at its lower price.
But making stocks more attractive to individual investors isn’t the only reason companies split their stock.
Another reason is to make a company’s stock more accessible to its employees, who can often purchase shares via an employee stock purchase program. If the company’s stock price is too high, employees may not be able to even buy one share per month. A lower stock price can enable more employees to buy into the company.
In fact, the employee factor is the main reason Netflix mentioned its stock split.
“The purpose of the stock split is to reset the market price of the Company’s common stock to a range that will be affordable to employees who participate in the Company’s stock options program,” the company said when announcing the split on October 30.
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