Is Netflix’s 10-For-1 Split A Trigger For Another Surge?

Streaming giant Netflix stock (NASDAQ: NFLX) has approved a 10-for-1 stock split—the second split in a decade—as it aims to make shares more accessible to retail investors and employees participating in its stock option program. The company has set November 10 as the record date, with split-adjusted trading beginning on November 17. Netflix stock has been a strong performer, rising by over 23% year-to-date, and growing by more than 5x from lows seen in 2022. So will the current split drive further growth for Netflix stock?

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Netflix’s Unexpected Post Covid Renaissance

Netflix has seen several important changes since the pandemic that have strengthened its position in streaming. The company’s crackdown on password sharing and launch of a cheaper, ad-supported plan have both worked well, attracting millions of new users and improving profit margins. Netflix has previously indicated that half of new users in eligible markets are choosing the ad-supported option, driving strong growth in advertising revenue and boosting average per user revenues. The paid sharing option – which charges a fee to accounts to add users outside their households, has also yielded results.

In 2024 alone, Netflix added about 40 million subscribers, although it has stopped reporting subscriber figures for 2025. That said, revenue growth has been strong.  The company reported revenue of $11.51 billion for Q3 2025, up 17% from the previous year. Netflix continues to outperform competitors in the streaming space, and it now has a market capitalization exceeding $450 billion, which is more than Disney, Comcast, and Warner Bros combined.  Things remain interesting in the near-term.  Netflix’s upcoming partnership with Spotify to bring video podcasts to Netflix in 2026 shows the company’s effort to broaden its content beyond movies and shows.

How The Split Helps

While splits don’t alter the fundamental outlook for a company, they often trigger a run-up in stock prices post-announcement, especially for high-interest tickers. We saw this during Nvidia’s recent split and Tesla’s first stock split around the Covid-19 pandemic. Additionally, stocks tend to outperform post-split for two reasons: they enhance accessibility for smaller investors, driving up demand and trading volumes. In the Netflix case, the price of an individual share of stock would fall to a level of about $110 from $1,100 currently, and this could be a more palatable sum for retail investors. Moreover, splits also signal that management is confident about the company’s prospects, and also that they believe that the stock could continue to go up on the long run.

NFLX In The Dow?

There is also speculation about Netflix’s potential inclusion in the Dow Jones Industrial Average (DJIA). The Dow is a price-weighted index, and this has made Netflix’s four-digit share price a barrier to entry – the median stock in the index trades at roughly  $250, with the highest priced stock (Goldman Sachs) trades at under $800. Netflix’s pre-split stock price would have been disproportionately influential, complicating its addition to the Dow.

By lowering its share price tenfold, Netflix now better aligns with the Dow’s structure. Major companies like Amazon, and Sherwin-Williams executed stock splits before entering the Dow, effectively lowering their share prices to fit the Dow’s price structure better. While an inclusion is by no means certain, being added to the DJIA would likely boost demand from passive index funds, attract greater institutional ownership, and enhance Netflix’s standing as a blue-chip name in the U.S. stock market.

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