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Netflix Announces 10-for-1 Stock Split. Here's What Investors Need to Know.
The Motley Fool· 2025-10-31 07:05
Core Viewpoint - Netflix has announced a 10-for-1 stock split, marking only the third time in its history, which has generated significant interest among investors and raises questions about the implications of such a move [3][5]. Business Performance - Netflix has a substantial audience of over 500 million people across 190 countries, broadcasting in 50 languages [1]. - The company's stock price has surged, climbing 44% over the past year, and showing increases of 116% and 936% over the last five and ten years, respectively [2]. - For the first nine months of 2025, Netflix reported a revenue growth of 15% year-over-year to $33.1 billion, with earnings per share (EPS) rising 26% to $20.12 [14]. Stock Split Details - The stock split will be effective for shareholders of record as of November 10, 2025, with additional shares distributed after the market closes on November 14, 2025 [5][6]. - Post-split, shareholders will own 10 shares valued at approximately $110 each, based on the current trading price of around $1,100 per share [7][8]. Investor Psychology and Market Impact - Stock splits can create excitement among investors, potentially driving up stock prices; historically, companies that split their stock see an average price gain of 25% in the year following the announcement [10]. - The motivation behind Netflix's split includes making shares more accessible to employees participating in the stock option program [10]. Future Outlook - Netflix's operating margin has improved, reaching 31.3% in 2025, up from 27.4% in 2024 and 20.9% in 2023, indicating increased profitability despite ongoing content investments [14]. - Upcoming releases, including the final season of "Stranger Things" and other popular series and films, are expected to drive further engagement and revenue growth [15]. - The stock is currently priced at 34 times next year's expected earnings, which is considered a fair valuation given the company's anticipated revenue growth of approximately 12% annually over the next five years [16].
Netflix just pulled out the oldest trick in the book to juice its stock
Yahoo Finance· 2025-10-31 05:16
Core Points - Netflix announced a 10-for-1 stock split, providing shareholders with nine additional shares for every one they own as of November 10, with new shares trading starting November 17 [1][4] - The stock split aims to make shares more accessible to employees participating in the stock option program, without altering the company's valuation or fundamentals [2] - Netflix shares have increased over 40% since the beginning of the year, with a 2% rise in after-hours trading following the stock split announcement [3] Company History - This marks the third stock split for Netflix, following splits in 2004 and 2015, a common practice among successful companies [4] - Other companies, such as Amazon and Nvidia, have also recently executed stock splits, indicating a trend among high-performing firms [4]
Amazon carries Wall Street to the finish of another winning week and month
Yahoo Finance· 2025-10-31 04:50
Core Viewpoint - Amazon's strong quarterly profit report significantly boosted the U.S. stock market, leading to a winning week and month for major indices [1][2]. Group 1: Amazon's Performance - Amazon's stock surged by 9.6% after reporting a profit that exceeded analysts' expectations, with CEO Andy Jassy noting accelerated growth in its cloud-computing business [2]. - The company's market capitalization of approximately $2.4 trillion means its stock movements have a substantial impact on the S&P 500, which would have declined without Amazon's performance [2]. Group 2: Other Influential Stocks - Apple, valued at over $4 trillion, had a less pronounced effect on the market, finishing down 0.4% despite reporting better-than-expected profits [3][4]. - Reddit's stock increased by 7.5% after also reporting stronger profit and revenue than anticipated [4]. - Coinbase Global's stock rose by 4.6% following a profit report that topped expectations [5]. Group 3: Market Trends and Expectations - Netflix announced a 10-for-1 stock split, which could make its shares more affordable while maintaining the same total value for investors, leading to a 2.7% increase in its stock price [5]. - AbbVie experienced a 4.5% decline despite reporting stronger-than-expected profits, as analysts noted that its profit growth was not as robust as before [6]. - There is increasing pressure on companies to deliver significant profit growth to justify the high valuations seen in the stock market since April [7].
Netflix Announces 10-For-1 Stock Split, Shares Rise
Benzinga· 2025-10-30 21:19
Core Viewpoint - Netflix Inc. announced a 10-for-one forward stock split to make its shares more accessible to employees participating in the stock option program, leading to a rise in stock price during extended trading sessions [1][3]. Group 1: Stock Split Details - Each shareholder of record as of the close of trading on November 10, 2025, will receive nine additional shares for every share held after the close of trading on November 14, 2025 [2]. - Trading is expected to begin on a split-adjusted basis at market open on November 17, 2025 [3]. Group 2: Stock Performance - Following the announcement, Netflix shares increased by 2.97%, reaching a price of $1,121.37 during Thursday's extended trading session [3].
Netflix Sets Ten-For-One Stock Split To Make High Flying Shares More Affordable
Deadline· 2025-10-30 20:54
Group 1 - The core point of the news is that Netflix's Board of Directors has approved a 10-for-1 forward stock split to make its stock more accessible to employees participating in the stock option program [1] - The stock split will be executed through an amendment to the company's Amended and Restated Certificate of Incorporation [1] - The stock split will result in shareholders receiving nine additional shares for every share held as of the record date, which is November 10, 2025 [2] Group 2 - Trading on a split-adjusted basis is expected to begin on November 17, 2025 [2]
Netflix announces a 10-for-1 stock split
CNBC· 2025-10-30 20:18
Core Points - Netflix announced a 10-for-1 stock split to make shares more accessible to retail investors and employees [1][2] - Shareholders as of November 10 will receive nine additional shares for each share held on November 14, with trading at the new price starting on November 17 [1] - The stock split comes after a significant increase in share price, with Netflix shares exceeding $1,000 each [2]
Prediction: This Will Be the Most Prominent Stock Split of 2026
Yahoo Finance· 2025-10-30 09:35
Key Points Netflix's high share price and its prior history make it a top candidate for a stock split soon. The company's growth prospects further increase the likelihood. 10 stocks we like better than Netflix › It's always hard to predict the next major stock split on Wall Street, but investors can consider several factors to make an educated guess. First, the higher a corporation's stock price, the more likely it is a split is forthcoming, all else being equal. Second, businesses with attractive ...
Nvidia Just Got Overtaken As No. 1 Dow Jones Stock In 2025
Investors· 2025-10-29 14:47
Group 1 - Caterpillar (CAT) has surpassed Nvidia (NVDA) as the top-performing stock in the Dow Jones this year, driven by strong sales in power equipment for data centers [1] - The company's Q3 earnings exceeded estimates, although profit was impacted by tariff costs compared to the previous year [1] - CAT stock is currently the leading stock in the Dow Jones index, reflecting its growth potential in the AI data center market [1]
Palantir Stock Rises With Earnings Looming. There Is Talk of a Stock Split.
Barrons· 2025-10-28 14:41
Core Viewpoint - Palantir has experienced a significant increase in stock value over the past year, attracting attention from retail investors who are considering a stock split [1] Group 1 - The stock of Palantir has risen sharply over the past year, indicating strong market performance [1]
Will Microsoft Announce a Stock Split on Oct. 29?
The Motley Fool· 2025-10-27 09:30
Core Viewpoint - Microsoft has not announced a stock split in over two decades, and with its current stock price around $500 per share, there is speculation about a potential split announcement on October 29 during its Q1 FY 2026 earnings release [1][7][13]. Company Overview - Microsoft is a member of the Dow Jones Industrial Average, which is price-weighted, necessitating that its stock price remains competitive with peers [2]. - It is the third-largest component in the Dow Jones, following Goldman Sachs and Caterpillar, which may prompt a stock split to maintain its market position [3]. Historical Context - Microsoft has a history of stock splits, having executed nine in total, with the last one occurring in 2003 [5]. - The current management's approach to stock splits is uncertain, making it difficult for investors to predict future actions based on past trends [5]. Financial Performance - In its fiscal fourth quarter, Microsoft reported a revenue increase of 18% year-over-year to $76.4 billion, with diluted earnings per share rising by 24% [8]. - The cloud computing segment, particularly Microsoft Azure, has been a significant growth driver, with Azure revenue growing by 39% in Q4 [9][10]. Market Position - Microsoft's stock has risen over 20% since the beginning of 2025, although this performance lags behind some of its big tech peers [11]. - The stock is currently valued at 33 times forward earnings, which is not the cheapest compared to competitors, placing Microsoft in a challenging position [11][14]. Investor Sentiment - There are high expectations for Microsoft's upcoming earnings report, which could lead to muted market reactions if results meet expectations [13]. - A stock split announcement could potentially boost the stock price, but this outcome is not guaranteed [13].