Should You Buy Netflix Before Its 10-for-1 Stock Split on 17 November 2025?

Core Insights - The stock split of Netflix is a cosmetic change that reflects the company's strong performance and growth, making shares more accessible to a wider range of investors [1][10][12] Financial Performance - Netflix reported a US$619 million tax charge due to a Brazilian Supreme Court ruling, impacting margins from 31.5% to 28% [3] - Free cash flow (FCF) for the first nine months of 2025 increased by 37% year-on-year to US$7.6 billion, with expectations of reaching around US$9 billion for the full year [4][11] Content Strategy - Netflix's market share in TV viewing has grown by 15% in the US and 22% in the UK since late 2022, with successful series like "Wednesday Season 2" and "Happy Gilmore 2" [5] - The animated film "KPop Demon Hunters" achieved 325 million views, becoming Netflix's most popular film, contributing to new revenue streams [6] - Licensing deals with companies like Mattel and Hasbro, along with merchandise and live experiences, are enhancing Netflix's franchise value [7] Growth Initiatives - The ad-supported tier is experiencing rapid growth, with US upfront commitments more than doubling in Q3 2025, and ad revenue expected to more than double in 2025 [8] - Netflix is leveraging Generative AI to improve productivity, including applications in content discovery and ad optimization, which could enhance margins in the future [9] Market Position - The upcoming stock split on November 17 will lower the share price from approximately US$1,238 to under US$124, but the company's valuation remains strong due to its diversified revenue streams and robust cash flow [10][11]