Netflix Hits All-Time Highs: Could Another Stock Split Be On The Horizon?

Netflix Inc NFLX stock hit all-time highs Wednesday after the company reported fourth-quarter financial results that beat analyst estimates.

With plenty of attention shifting to the 2025 content lineup, investors are also questioning if Netflix will split shares once again.

What Happened: Netflix announced it added 18.91 million net new paid subscribers in the fourth quarter, its best quarterly member gain ever.

The company will no longer share key metrics, including membership gains and total members going forward, which could put more pressure on the company's revenue and earnings per share figures to keep investors happy.

Another way to keep investors happy in 2025 could be a stock split. While a stock split wouldn't change the value of the company, the move could make shares more attractive to retail investors looking to accumulate whole shares and not fractional shares and to options traders.

Benzinga reached out to Netflix for comment on a potential stock split and did not hear back.

Netflix went public in May 2002 at $15 per share. The company has split shares two times in its history, a 2-for-1 split in February 2004 and a seven-for-one split in July 2015.

Why It's Important: Netflix's first stock split came in 2004 when the company was still renting DVDs through the mail to customers and competing with physical DVD rental chains like Blockbuster, which later went bankrupt in 2010.

That stock split happened when shares were trading at around $72.

The 2015 stock split came years after the company entered the streaming sector and had launched several of its own original series, including "Lillyhammer," and "House of Cards."

This stock split came when shares traded at around $700.

As shares soared over $700 in late 2024, investors began asking if another stock split could happen.

The company highlighted its strong fourth-quarter membership adds and its 2025 content slate that includes new seasons of "Squid Game," "Stranger Things" and "Wednesday."

Without reporting some of the normal membership metrics, investors could grow impatient and be looking for new catalysts from the company. A stock split could act as another catalyst for investors.

Netflix stock opened for trading at a split-adjusted $111.02 on July 16, 2015, after the seven-for-one split. A $1,000 investment at the time could have bought 9.01 Netflix shares. Today, that $1,000 investment would be worth $8,834.49, up 783.4%.

While the same returns aren't guaranteed if Netflix splits their stock, investors will be closely watching.

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