Netflix announces 10-for-1 stock split

Netflix has made a big announcement – they’re doing a 10-for-1 stock split! But don’t worry, this doesn’t change anything fundamental about the company. The goal is to make their pricey shares more available to regular investors like you and me.

If you’re already a shareholder by November 10, you’ll receive nine extra shares for each one you currently hold. This change will happen on November 14, and the new post-split price will start trading on November 17.

Netflix has seen its shares skyrocket over the past few years, with each share costing over $1,000. By splitting the shares, they hope to make it easier for their employees who participate in the stock option program to access them.

Even though the stock price is high, it’s essential to note that the value of your holding doesn’t change with a split. It just means you’ll have more shares at a lower price. Netflix has done this twice before, in 2015 and 2004.

Some may wonder why companies like Netflix split their shares at all. It’s a common move for stocks that reach this level, but with fractional trading available on most brokerage platforms, the effect is up for debate.

For example, Warren Buffett has always been against splitting shares of Berkshire Hathaway, keeping the stock price above $717,000. He did, however, create a more affordable “B” class of shares priced at $478 each.

So, mark your calendars – exciting changes are coming for Netflix investors with this upcoming stock split!