Netflix (NFLX) Soars: 10-for-1 Stock Split Kicks In as Ad Revenue Explodes 100%

Netflix just pulled a Wall Street magic trick—slicing its stock like a pizza while ad dollars pour in.

The 10-for-1 split makes shares look cheaper (psychology wins again), but the real story? Advertising revenue doubling—because nothing says 'bullish' like monetizing eyeballs harder.

Streaming’s OG disruptor now plays the platform game—feeding shareholders a split and advertisers a captive audience. Cynics whisper: 'Next earnings call, expect more buzzwords than a Silicon Valley pitch deck.'

TLDR

• Netflix’s 10-for-1 stock split begins trading November 17, 2025, making shares more accessible to employees and smaller investors
• The company’s revenue grew 17.2% year-over-year in Q3 2025, accelerating from previous quarters
• Netflix’s advertising business is on track to more than double revenue in 2025, though still small compared to subscriptions
• Operating margin expanded from 16% in 2023 to 27% in 2024, with expectations to reach 29% in 2025
• Shares traded at $1,000+ before the split, with forward P/E ratio of 35 and current market cap of $471.3 billion

Netflix shares begin trading on a split-adjusted basis on November 17, 2025. The 10-for-1 split reduces the stock price from over $1,000 to more manageable levels.

The streaming company last split its stock in 2015. Since then, shares have climbed on strong business growth and investor confidence.

Netflix, Inc., NFLX

Netflix says the split aims to improve accessibility. The MOVE particularly benefits employees who participate in the company’s stock option program.

The split doesn’t change the company’s value. Investors simply receive 10 shares for each one they owned before.

Shares have seen extreme volatility in recent years. The stock traded below $200 as recently as 2022.

Third-quarter revenue jumped 17.2% year-over-year. This marks an acceleration from 15.9% growth in Q2 and 15.7% growth for full-year 2024.

Management projects another 17% revenue increase for Q4. The growth comes from price increases, new members, and advertising revenue.

Advertising Business Shows Strong Growth

The advertising operation launched less than three years ago. It remains small compared to the subscription business but is scaling quickly.

Netflix expects to more than double its advertising revenue in 2025. Management expressed growing confidence in the ads business outlook.

The advertising segment provides a new growth avenue. Netflix can expand without relying solely on subscriber additions and price hikes.

Advertising economics can be attractive for streaming platforms. The fast-growing business should boost profits over time.

Operating margins have already improved substantially. The company’s 2024 operating margin reached 27%, up from 16% in 2023.

Valuation and Stock Performance

Netflix expects its 2025 operating margin to hit 29%. This represents continued expansion even before advertising becomes a major revenue source.

The stock trades at a price-to-earnings ratio above 47. This might seem high at first glance.

However, the forward P/E ratio sits at 35. This metric accounts for expected earnings growth from double-digit revenue increases and margin expansion.

The company holds a market cap of $471.3 billion. Year-to-date, shares have gained 25.42%.

Competition in streaming remains intense. Deep-pocketed tech companies continue investing heavily in content.

Netflix’s market leadership position provides some protection. The company’s scale and subscriber base create advantages over smaller competitors.

The stock’s 52-week range spans from $80.93 to $134.12. Average daily trading volume stands at 3.6 million shares.

Gross margin sits at 48.02%. The company does not pay a dividend.