Prediction: This Will Be the First Mega Technology Company to Split Its Stock in 2025 (and It Isn't Tesla)

Core Viewpoint - Netflix is expected to split its stock in 2025 due to its high share price and consistent growth, but this does not necessarily indicate it is a good investment opportunity at the moment [2][12][14]. Company Performance - Netflix has experienced steady growth, with revenue increasing to over $40 billion in the past 12 months from less than $10 billion a decade ago [3]. - The company's operating income has risen significantly to over $11 billion, showcasing its strong position in the streaming video market [3]. - Netflix's stock has appreciated more than 1,000% over the past 10 years, driven by its operating leverage and pricing power, with an operating margin of 28% [5]. Market Position - As of the end of 2024, Netflix had over 300 million global paid streaming memberships, indicating substantial market penetration but also room for growth, especially in regions like Asia where it had fewer than 60 million subscribers [4][8]. - The company is expanding its offerings by venturing into live events and sports content, which could enhance its revenue streams [9]. Advertising Strategy - Netflix has introduced an advertising tier priced at $8 per month in the U.S., with 40% of new subscribers opting for this plan, indicating a potential for significant advertising revenue growth [10]. Stock Split Implications - A stock split, anticipated in 2025, would not affect Netflix's underlying business or market capitalization, merely dividing the existing shares into smaller units [12][13]. - Despite the potential stock split, Netflix's current market cap is around $500 billion with a price-to-earnings ratio of 56, suggesting it is not a cheap stock and may not be a good buy at this time [14].