Netflix Joins (Much Smaller) Stock-Split Club

Core Insights - Traditional stock splits have seen a resurgence in announcements, particularly with Netflix's recent 10-for-1 split, which contrasts with a general slowdown in the second half of 2025 [6][9][11] - The overall trend of stock splits has been declining since the 2022 bear market, with a notable peak of 99 splits in Q2 2025, but fewer announcements in recent quarters [3][5][9] - The market sentiment surrounding stock splits is cautious, with executives wary of sending overly bullish signals amid macroeconomic uncertainties [9][10] Stock Split Trends - The number of traditional stock splits increased from 5 in Q4 2022 to 24 in Q2 2025, indicating a potential recovery in corporate confidence [5] - High-profile companies like Alphabet, Amazon, and Tesla initiated splits in early 2022, marking a peak in post-COVID enthusiasm for stock splits [4][9] - Netflix's split is seen as a strategic move to regain investor attention, especially following a Q3 earnings miss [6][8] Recent Split Performances - Other companies that have recently split include Fastenal and O'Reilly Automotive, with ServiceNow announcing a 5-for-1 split just before Netflix [8] - Not all splits have resulted in positive outcomes; for instance, Chipotle's 50-for-1 split in 2024 led to a significant decline in its stock price [10] Future Outlook - The upcoming quarters will reveal whether Netflix's split will trigger a new wave of announcements or remain an isolated event [11] - The current market conditions, characterized by high index levels and low volatility, may encourage more companies to consider stock splits as a means to enhance accessibility and liquidity [11][12]