Core Insights - Stock splits generate excitement but do not alter a company's fundamentals or market capitalization [2][4] - Netflix executed a 10-for-1 stock split on November 17, following an 800% price increase over the last decade [1][2] - Stocks that undergo splits typically outperform the market, with an average total return of 25.4% in the year following the split [3] Company Fundamentals - Netflix reported a 17% year-over-year sales increase to $11.51 billion, achieving its highest quarterly market share in the U.S. and U.K. [6][7] - The company plans to increase content spending to $18 billion by 2025, focusing on markets outside North America [7] - Despite strong performance, Netflix faces long-term challenges from increased competition in the streaming industry [8] Strategic Opportunities - Netflix is reportedly among the bidders for Warner Bros. Discovery, which could enhance its content library and theatrical exposure [9] - The company has potential for revenue growth through price hikes and advertising, with estimates suggesting an additional $10 billion annually by the end of the decade [11] - Netflix's market share in India is only 13%, indicating significant growth potential in developing markets [11] Valuation - Netflix trades at a forward price-to-earnings (P/E) multiple of 34, higher than the S&P 500's multiple of 22, suggesting it is a premium investment [12]