Trading is expected to begin on a split-adjusted basis at the market open on Nov 17
[BENGALURU] Netflix on Thursday (Oct 30) announced a ten-for-one stock split, making the streaming company’s shares more affordable for retail investors.
The company said that it would issue nine additional shares for each share held after close of trading on Nov 10, adding that the split will make its stock more accessible to employees participating in its stock option programme.
Trading is expected to begin on a split-adjusted basis at the market open on Nov 17.
The streaming giant, which has benefited from a strong line-up of shows, including the recent success of the animated KPop Demon Hunters, currently has a market capitalisation of US$461.44 billion, as at Thursday’s close.
Its shares have risen more than 360 per cent over the past three years, far outpacing media rivals Walt Disney and Comcast. The stock was up about 3 per cent at US$1,123.49 in extended trading.
This marks Netflix’s third stock split since it went public in 2002, with the last one in 2019 that reduced the company’s per-share price to about US$100 from US$700.
“A split will make it easier for small investors to buy in but it doesn’t change anything about the company or its attractiveness to institutional investors who drive the market,” said Ross Benes, senior analyst at EMarketer.
Netflix’s forward price-to-earnings multiple (P/E), a common benchmark for valuing stocks, is 45.96, compared with Walt Disney’s 17.54 and Comcast’s 6.89. REUTERS
