Netflix's 10-for-1 Stock Split: Time to Buy Before It's Too Late?

Core Viewpoint - Netflix's stock price has decreased post-split, despite the company's improved earnings performance over the years [2][5]. Company Performance - Netflix's stock underwent a 10-for-1 split, reducing the price from $1,125 to $112.50, but the stock has since fallen to around $104 [2][6]. - In 2016, Netflix's profit was approximately $187 million, or $0.04 per share, while in the last year, the profit surged to $39 billion, or $1.98 per share [4][5]. - The current stock price is about ten times higher than it was nine years ago, while profits have increased fiftyfold, indicating a significant improvement in profitability relative to stock price [5][6]. Investment Opportunity - The recent decline in stock price (7% over the past week) presents a potential buying opportunity for investors [6][8]. - The current valuation stands at 42.5 times trailing earnings, with a long-term expected growth rate of 25%, suggesting that the stock may still be considered a good investment [7].