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Netflix has confirmed a 10-for-1 stock split to make its shares more affordable for employees and retail investors. The announcement, made on Thursday, will see every shareholder receive nine additional shares for each one currently held. The record date is 10 November, while the new shares will be distributed on 14 November. Trading at the adjusted price will begin on 17 November 2025.

The company's decision comes as Netflix shares have surged beyond £850 ($1,116) this year, making them among the most expensive in the S&P 500. In a statement, Netflix said the split was intended to 'reset the market price of the company's common stock to a range that will be more accessible to employees who participate in the company's stock option programme'.

Following the announcement, Netflix shares rose by more than two per cent in after-hours trading. The stock closed on Thursday at £850 per share, up around 40 per cent since the start of the year, reflecting growing investor confidence in the company's long-term prospects.

A move focused on inclusion

According to CNBC, Netflix joins a growing list of large technology and entertainment firms that have implemented stock splits after sustained price increases. The move does not alter the company's market value but reduces the price per share, resulting in shareholders holding more units while maintaining the same total worth.

Analysts have suggested that accessibility was the main reason behind the move, particularly for employees who receive stock options as part of their compensation packages. Although many trading platforms now allow fractional share purchases, companies often opt for stock splits to attract smaller investors and signal optimism about future performance.

This is Netflix's third stock split in its history. The company last divided its shares in 2015 with a 7-for-1 ratio, following a previous split in 2004. Each split has coincided with moments of expansion or transformation in Netflix's business model, from DVD rentals to streaming and, most recently, to a global entertainment powerhouse.

Financial context and company outlook

As Yahoo Finance reports, Netflix's third-quarter results showed revenue growth of 17 per cent to £9.3 billion ($12.2 billion), matching forecasts. However, earnings per share fell slightly below expectations because of a £490 million ($643 million) one-off charge linked to a tax dispute in Brazil. Despite that, the company remains profitable, driven by steady subscriber growth and a strong international presence.

The decision to split its stock also comes at a time when Netflix continues to lead the streaming industry amid fierce competition from rivals such as Disney+, Amazon Prime Video and Apple TV+. Analysts view the move as a sign of Netflix's confidence in its market position and commitment to rewarding employees with better access to company shares.

Netflix's approach mirrors that of other major corporations, including Apple, Alphabet and Amazon, which have carried out similar splits to make their shares more affordable. While some investors, such as Warren Buffett, have historically opposed stock splits, Netflix's leadership emphasises inclusivity and ownership as key priorities.

A new chapter for shareholders

The stock split marks a significant moment for Netflix, signalling a balance between growth and accessibility. It opens the door for more employees to share in the company's success while giving small investors the chance to invest in one of the world's leading entertainment brands. Trading under the new share structure will begin on 17 November 2025, marking the start of a new phase in Netflix's market journey.