Netflix's 10-For-1 Stock Split on November 17: Understanding the Real Opportunity for Investors

What’s Happening to Netflix Stock

Netflix is executing a transformative 10-for-1 stock split that will become effective on November 17, immediately reshaping how millions of retail investors can access the streaming giant’s shares. The current share price of approximately $1,100 will drop to around $110 per share, making entry points far more accessible than before. This marks the company’s third split since its 2002 IPO—a testament to relentless value creation that has generated a staggering 103,000% return over two decades.

The Engine Behind Netflix’s Growth

At its core, Netflix dominates a market it essentially created. The platform serves over 300 million subscribers globally, dwarfing competitors like Disney+ and HBO Max, which each maintain less than half of Netflix’s subscriber base. This scale advantage translates directly into profitability—a rarity in streaming. The company generated $10.4 billion in net income on $43.3 billion in revenue across the last four quarters, providing firepower to outinvest rivals on content and maintain competitive moats.

More notably, revenue acceleration is back in play. Recent quarterly top-line growth hit 17.2%—the fastest pace in four years—driven by two strategic catalysts that deserve investor attention.

The Ad-Supported Tier Revolution

Netflix’s $7.99 per-month ad-supported subscription has become a growth engine. Despite pricing below the Standard ($17.99) and Premium ($24.99) tiers, the advertising supplement ensures profitability. Across available markets, ad-tier signups now consistently exceed 50% of total new memberships. The financial impact is striking: advertising revenue doubled in 2024 and is positioned to more than double again in 2025, representing a rapidly expanding revenue stream with minimal content costs.

Live Events as a Member Acquisition Tool

The company’s pivot toward exclusive live sports and entertainment signals a new chapter. Netflix has secured rights to premium boxing matches and NFL broadcasts, with these events attracting massive viewership. The Canelo Álvarez versus Terence Crawford boxing match—referenced as the most-watched bout this century with 41 million viewers—exemplifies how live content breaks through traditional limitations of on-demand streaming and drives subscriber growth.

The Stock Split Reality Check

Stock splits themselves don’t alter underlying company value, but they often trigger buying interest from previously priced-out retail participants, potentially lifting share prices in the near term. However, Netflix’s valuation tells a cautionary tale for short-term speculators.

Trading at a 46.1 P/E ratio (slightly above its three-year average of 44), Netflix stock is already pricing in optimistic expectations. Wall Street projects earnings of $32.30 per share in 2026 ($3.23 after the split), which would position the stock at a forward P/E of 34. For Netflix to maintain its current valuation, shares must appreciate 35% before year-end 2026—a demanding but not impossible target if momentum persists.

A Longer Lens Required

The real opportunity emerges for patient investors willing to extend their horizon to five years or beyond. This timeframe allows emerging revenue streams—particularly the advertising business and live event programming—to fully mature and demonstrate their profit-contributing potential. Over such a period, Netflix’s competitive advantages in content spending, subscriber loyalty, and platform scale should compound meaningfully.

The stock split itself is primarily a mechanism to broaden the investor base. The tangible question isn’t whether to rush in immediately, but whether Netflix’s long-term growth trajectory warrants holding through inevitable market cycles and competitive pressures. For investors convinced of the streaming category’s staying power and Netflix’s dominant position within it, the November 17 split simply makes participation more practical—not necessarily more attractive at current valuations alone.