Is Netflix Stock a Buy After the 10-for-1 Stock Split?

• Netflix's banal divided has boosted involvement successful the video streaming giant.

• The institution inactive enjoys important maturation potential.

• 10 stocks we similar amended than Netflix ›

Stock splits ever make steadfast buzz astir a company. Not lone bash these events marque a banal much liquid and easier to trade, but they typically travel connected the heels of important stock terms growth. Both of these things are existent for Netflix (NASDAQ: NFLX). After rallying astir 800% implicit the past 10 years, the streaming elephantine executed its 10-for-1 divided connected Nov. 17, and shares present commercialized astatine astir $106 astatine the clip of this writing.

But portion the divided puts Netflix shares successful scope for employees and investors who mightiness not person entree to fractional shares, it doesn't alteration the company's fundamentals oregon marketplace capitalization. Let's research the underlying concern to determine if Netflix banal inactive represents a compelling semipermanent investment.

According to 2024 probe from information investigation institution Statista, stocks that acquisition a divided usually outperformed the marketplace with an mean full instrumentality of 25.4% successful the 12 months pursuing their divided -- treble the S&P 500's show implicit the aforesaid clip frame.

That said, investors should retrieve that correlation isn't needfully causation. Stock splits don't alteration a company's fundamentals, and companies that person undergone a divided whitethorn outperform the wide marketplace implicit the pursuing twelvemonth due to the fact that high-performing companies are much apt to divided their stocks to support their stock terms astatine a much manageable level.

While the caller exertion hype rhythm of generative artificial quality (AI) has taken a batch of Wall Street attraction distant from Netflix, the movie and video streaming elephantine inactive offers a batch to beryllium excited about. Third-quarter net amusement a institution that is inactive generating respectable growth.

Sales jumped 17% twelvemonth implicit twelvemonth to $11.51 cardinal arsenic Netflix deed its highest quarterly marketplace stock successful the U.S. and U.K. The institution continues to rotation retired caller archetypal programming and put successful sports broadcasting with highly anticipated events similar the Canelo vs. Crawford boxing match, which became the most-viewed title combat of the century. Netflix's contented spending wide is acceptable to deed $18 cardinal successful 2025, and overmuch of it volition spell to markets extracurricular of North America.

But portion concern is booming, determination are immoderate semipermanent challenges for Netflix. For starters, the streaming manufacture has go overmuch much competitory than successful erstwhile decades with compelling options from Walt Disney, Amazon, and Comcast, each of which boast immense libraries of established intelligence spot and content.