Netflix(US:NFLX) Zhi Tong Cai Jing·2025-10-30 22:20Core Viewpoint - Streaming giant Netflix (NFLX.US) announced a 1-for-10 stock split approved by its board to make the company's stock price more accessible for employee participation in stock option plans, leading to a more than 3% increase in after-hours trading following the announcement [1] Group 1: Stock Split Details - The stock split aims to adjust the market price of the company's common stock to a range that is easier for employees to participate in the stock option plan [1] - The stock split will officially take effect on November 17, increasing the total shares outstanding tenfold while reducing the price per share to one-tenth of its original value, keeping the total market capitalization unchanged [1] - This is Netflix's first stock split since 2015, with investors receiving nine additional shares for every share they hold [1] Group 2: Market Context and Analyst Insights - The announcement comes amid recent volatility in Netflix's stock price, following a quarterly earnings report that fell short of market expectations, primarily due to ongoing disputes with Brazilian tax authorities impacting quarterly profits [1] - Analysts note that while the stock split does not change the company's fundamentals, it may enhance market liquidity, broaden the retail investor base, and improve the attractiveness of employee stock ownership plans [1] - As the effective date of the stock split approaches, Netflix's stock price may experience a short-term boost from investor optimism [1]