If you’ve been watching the ticker lately, you probably saw Netflix’s share price do a massive nose-dive in late 2025. Don't panic. You didn't lose 90% of your money overnight if you were holding the stock. Honestly, it was just the math catching up to the reality of a $1,100 share price.
Netflix officially executed a 10-for-1 stock split on November 17, 2025.
Basically, the board decided that the stock had become a bit too "fancy" for the average person to just grab a few shares on a whim. Before the split, one single share was trading for more than a used 2012 MacBook Pro. That’s a high barrier for a retail investor or an employee just starting their 401(k). By splitting the stock, they didn't change the size of the "pizza"—they just cut it into ten slices instead of one.
The Reality of the Netflix Stock Split News
There’s this weird misconception that a stock split makes a company more valuable. It doesn't.
If you had one share worth $1,100 on November 14, 2025, you woke up on Monday, November 17, with ten shares worth $110 each. Your total account balance stayed exactly the same. However, the psychological impact is real. Lower prices make the stock feel "cheaper," even if the valuation metrics like the P/E ratio haven't budged an inch.
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Netflix isn't new to this. They’ve done this dance before:
- 2004: A 2-for-1 split when they were still mailing DVDs in red envelopes.
- 2015: A 7-for-1 split as they were becoming a global streaming titan.
- 2025: This latest 10-for-1 split to handle the post-$1,000 price surge.
Why Now?
The timing was deliberate. Netflix had a monster 2025, with shares crossing the $1,000 mark in February and peaking near $1,339 in June. When a stock gets that heavy, liquidity starts to dry up. Most people don't want to drop a full thousand dollars just to own one unit of a company. By dropping the price to the $110 range, Netflix opened the door to a whole new class of retail buyers and simplified their employee stock option programs.
What’s Happening in 2026?
We’re now in early 2026, and the "post-split honeymoon" has hit some turbulence. As of mid-January 2026, the stock is hovering around $88 to $90. That’s a significant pullback from the split-adjusted highs.
Why the dip? It’s not the split's fault. It’s the business.
Investors are currently obsessed with the rumored (and massive) deal involving Warner Bros. Discovery assets. We're talking about a potential $83 billion acquisition of HBO and various film studios. That is a lot of debt to swallow. KeyBanc recently lowered its price target to $110 because of the uncertainty surrounding this deal. It’s a classic case of the market loving the content but fearing the balance sheet.
The Content Game is Getting Expensive
Netflix is forecasting about $9 billion in free cash flow for 2025/2026, but the competition isn't sleeping. While they’ve successfully cracked down on password sharing and built a decent ad-tier business, the "low-hanging fruit" growth is mostly gone. They now have to fight for every minute of attention against YouTube, TikTok, and a revitalized Disney.
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Recent Q3 2025 data showed revenue growth of 17%, which is great, but operating margins were a bit wonky due to some tax disputes in Brazil. It’s these little "boring" details that are moving the needle more than the stock split news ever could.
Actionable Insights for Investors
If you're looking at Netflix right now, don't buy just because the price looks "low" at $90. It’s only low compared to the old $1,100 price. You have to look at the fundamentals.
- Check the Earnings: Netflix reports Q4 2025 results on January 20, 2026. This will be the first major test of their 2026 guidance.
- Watch the Warner Deal: If the acquisition goes through, expect volatility. Integrating HBO is a massive undertaking.
- The Ad-Tier Factor: Keep an eye on how many new subscribers are opting for the cheaper, ad-supported version. That’s where the long-term margin growth is hidden.
- Ignore the "Split Hype": The split is over. It’s a mechanical change in the past. Focus on the 13% revenue growth targets for the coming year.
Honestly, Netflix is still the king of the hill, but the hill is getting steeper. The stock split was a great way to let more people into the stadium, but now the team actually has to play the game to keep the fans in their seats.
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Your next step: Set a price alert for the January 20th earnings call. The market is expecting $0.55 EPS, and any miss there will likely override any positive feelings left over from the stock split.