Netflix's Stock Just Did Something It Hasn't Done Since 2015

Core Viewpoint - Netflix has announced a 10-for-1 stock split, which is seen as a sign of management's confidence in the company's medium-term outlook, despite the changing streaming landscape [2][5]. Group 1: Stock Split Details - Netflix previously conducted a 7-for-1 stock split in 2015 and a 2-for-1 split in 2004, indicating a pattern of stock splits approximately every 10.5 years [2][3][4]. - The new shares will begin trading at the adjusted price on November 17 [2]. Group 2: Financial Performance - Over the past three years, Netflix's shares have increased by 285%, showcasing a strong recovery after facing challenges such as competition and password-sharing issues [3]. - In the third quarter, Netflix reported a revenue growth of 17.2% year over year, reaching $11.5 billion, and earnings per share increased by 8.7% to $5.87 [11]. Group 3: Future Growth Catalysts - Netflix is exploring live sports, which could significantly enhance viewer engagement, with plans to bid for UEFA Champions League rights [7][8]. - Upcoming releases, including the second season of "One Piece" and the final season of "Stranger Things," are expected to boost subscriber count and engagement [8][9]. - The company is leveraging its data on viewer preferences to enhance content creation and is expanding its advertising business, which could lead to further success [10].