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Netflix Sets 10-for-1 Stock Split as Street Highlights Ad-Tier Upside

The split is intended to improve employee access to options, signaling confidence in momentum from the growing ad tier.

Overview

  • Split-adjusted trading begins Nov. 17, with shareholders of record on Nov. 10 receiving nine additional shares after the close on Nov. 14.
  • Management says the move lowers the per-share price to make equity more accessible to employees who use stock options.
  • Q3 revenue rose about 14.8% year over year, though earnings and margins were pressured by an approximately $619 million Brazilian tax assessment described as a one-off.
  • BMO maintained an Outperform rating and projected Netflix’s advertising revenue will more than double in 2025, while Lightshed’s Rich Greenfield called the ad business early-stage but rapidly growing.
  • Netflix shares climbed following the split announcement, and separate media reports suggest the company may be exploring a bid for Warner Bros. Discovery, which remains unconfirmed.