Overview
- Netflix says split-adjusted trading will begin next week after its 10-for-1 move.
- A split does not change intrinsic value but makes shares and options more accessible, which is notable with NFLX recently above $1,000.
- An analysis of about 310 optionable splits since 2010 shows a 0.48% average two-week gain, trailing the S&P 500’s 0.60%.
- For 32 stocks priced above $400 before splitting, returns fell 1.2% on average over the first two weeks, with only 38% outperforming the index.
- Longer-term averages for that high-priced group improved, with a 17.4% one-year gain versus 9.8% for the S&P 500, though outliers such as MSTR heavily skewed results.