Netflix Announces 10-for-1 Stock Split Following Strong 2025 Rally
Key Takeaways:
- Netflix announced a 10-for-1 stock split, effective after the close of trading on November 14, 2025.
- The stock split aims to make Netflix shares more accessible to individual investors by lowering the per-share price.
- The split will not impact Netflix’s underlying fundamentals or overall value, but could provide a short-term boost to the stock price.
- Morningstar believes Netflix is currently overvalued and expects its stock price to eventually decline based on fundamentals.
- Netflix joins a growing list of companies, including ServiceNow, Broadcom, Nvidia, Walmart, and Chipotle, that have recently announced stock splits.
Following a strong performance in 2025 that saw its shares surge above $1,000 for the first time in February, streaming giant Netflix has announced a 10-for-1 stock split. As of the announcement, Netflix held the 12th-highest stock price within the Morningstar US Market Index. The move is intended to make the company’s shares more accessible to a wider range of investors.
The mechanics of the split dictate that shareholders of record on November 10, 2025, will receive nine additional shares for each share they own. Trading on the split-adjusted basis will begin on November 17, 2025. This is not Netflix’s first stock split; the company previously executed a seven-for-one split in 2015 and a two-for-one split in 2004.
A stock split essentially divides each existing share into multiple new shares. While this increases the total number of outstanding shares, it does not alter the overall value of the company or an investor’s total holdings. Companies typically initiate stock splits when their share price has risen significantly, potentially making it difficult for individual investors to purchase shares. By increasing the number of shares and reducing the price per share, companies aim to improve liquidity and attract a broader base of investors, even though the company’s intrinsic value remains unchanged.
According to Morningstar senior analyst Matthew Dolgin, Netflix’s strong brand recognition makes its stock appealing to individual investors, but its high price may have deterred some from investing. “I’d guess that the high dollar price of the stock has led to a greater institutional skew than it would be otherwise,” Dolgin stated. The stock split will bring the per-share price down from approximately $1,100 to around $110, potentially opening the door for more retail investors.
Dolgin emphasizes that the stock split will not affect Netflix’s core fundamentals. Morningstar’s fair value estimate for the stock will be adjusted to $77 per share from $770, reflecting the purely mechanical division resulting from the 10-for-1 split. Notably, Dolgin recently increased the fair value estimate from $750 following the company’s third-quarter earnings.
While the split is not expected to change fundamentals, Dolgin anticipates a potential short-term boost to Netflix’s stock price. "I’d expect the split would apply upward pressure to the stock because it will become more accessible to retail buyers, especially through call options, which also result in more demand," he explained. However, he cautions that this effect is likely to be temporary. Over the long term, Dolgin believes that “None of this will supersede fundamentals as news and results occur, and we still believe the stock is fundamentally overvalued and should ultimately trade lower.” Currently, Netflix holds a 2-star rating from Morningstar, indicating that it is trading at a 45% premium to its fair value estimate.
Netflix’s announcement follows a relatively quiet period for stock splits in 2025. However, it joins ServiceNow, which recently announced a five-for-one split pending board approval in December, as the second major company to announce such a move in the fourth quarter. In 2024, several other prominent companies executed stock splits, including Broadcom and Nvidia (each 10-for-1), Walmart (three-for-one), and Chipotle (50-for-1). Chipotle’s 50-for-1 split was particularly notable as one of the largest in the history of the New York Stock Exchange.