Netflix Announces 10-for-1 Stock Split to Broaden Employee Participation

Netflix (NFLX) revealed plans for a 10-for-1 stock split, marking its third such MOVE since going public. Shareholders of record on November 10 will receive nine additional shares for each share held, with split-adjusted trading commencing November 17. The streaming giant's shares rose 2% in after-hours trading following the announcement.

The split will reduce Netflix's share price from approximately $1,125 to $112.50, making equity compensation more accessible to employees. Currently one of only ten S&P 500 constituents trading above $1,000, Netflix follows a tradition of using splits to maintain retail investor accessibility despite maintaining identical fundamental value.

This corporate action comes despite disappointing Q3 earnings reported earlier in October, demonstrating management's long-term focus on employee retention through equity incentives. Historical precedents include splits in 2004 and 2015, with the stock gaining over 40% year-to-date prior to the announcement.