Netflix stock is set for a 10-for-1 split. What you need to know

Netflix said it plans to do a 10-for-1 stock split, in a move that could make its shares more accessible to a wider range of investors.

The split, which is scheduled to take place after the closing bell on Friday, November 14, means shareholders will receive nine new shares of Netflix (NFLX) for every share they owned before the split. Their total stake in the company will not change because of this, but the value of each share will subsequently be about 10% of its price before the split takes effect. Trading is scheduled to begin at the revised price when the market opens on Monday, November 17.

Netflix said the change is intended to “reset the market price of the company’s common stock to a range that will be affordable to employees who participate in the company’s stock options program.” This could also make it more attractive to investors outside the company who may have turned away from the stock at recent levels after the rally this year.

Netflix shares rose more than 3% at about $1,123 in recent trading, bringing their year-to-date gains to about 26%, outpacing the broader S&P 500 index by about 16% over the same period.

Although Netflix shares took a hit earlier this month after the company’s third-quarter profit beat analyst estimates due to a one-time tax expense in Brazil, it has been a strong year for the streaming giant’s stock, which has benefited from a well-received content slate and expectations for continued growth, along with the perception that it is relatively insulated from changing tariff policies.

The decision to undergo a split, which investors typically see as a positive sign, could signal confidence in more gains ahead for Netflix. By contrast, reverse stock splits — which consolidate shares to raise the price of each individual share — are often taken as a sign of concern about a significant decline in the stock price.