Netflix Announces 10-for-1 Reverse Stock Split

Netflix made a big move on November 17th by starting a 10-for-1 stock split. This means that the streaming giant now has 4.24 billion outstanding shares, up from 423 million just a few days prior. Around 6.5 million shares were traded by 10:15 a.m. ET on the NASDAQ, and shares were selling for $110 each, a significant drop from $1,112.17 on November 14th.

This isn’t the first time Netflix has split its stock. They did a seven-for-one split in July 2015 and a two-for-one split in February 2004. The reasoning behind this move is to make Netflix shares more appealing to a wider range of investors. In other news, there are rumors that Netflix is looking to acquire some assets from Warner Bros. Discovery.

Just before the split, Reed Hastings, co-founder and chairman, sold shares worth $41.3 million, and David Hyman, chief legal officer, sold shares worth $21.4 million. This strategic move aims to make Netflix shares more accessible, setting the stage for potential growth and investor interest.