Meet the Newest Stock-Split Stock in the S&P 500. It's Soared 95,000% Since Its IPO, and It's Still a Buy Heading Into 2026, According to Wall Street.

Netflix (NASDAQ: NFLX) has been one of the biggest growth stories in recent years. Netflix launched its website in 1998 and began its first subscription services in 1999, renting out DVDs. The company went public via an initial public offering (IPO) in May 2002, but the real turning point didn't come until 2007 when it began offering streaming services. In 2016, Netflix launched its streaming service in 130 countries, and there's been no looking back since for the entertainment giant.

Between its IPO and international launch, Netflix split its stock twice -- once in 2004 and then in 2015 -- after significant run-ups in its share price. Ten years later, Netflix is doing it yet again. It has announced a 10-for-1 forward stock split, with a record date of Nov. 10. So, every shareholder owning shares of Netflix as of the close of trading on Nov. 10 will get nine additional shares for every share held after the close of trading on Nov. 14.

Image source: Netflix.

Everything you need to know about the Netflix stock split

Netflix's stock price has risen by over 900% in the past decade and is currently trading above $1,100 per share. A stock split makes the shares more "affordable" but only in absolute price terms.

That's because in a stock split, the company increases its outstanding share count by issuing new shares to existing shareholders in the stated ratio (for Netflix, it's 10-for-1). At the same time, the price of the stock adjusts according to the ratio.

That means Netflix's share price will decrease by one-tenth from Nov. 17 when the stock will begin to trade on a split-adjusted basis. In effect, the market capitalization (share price multiplied by the number of shares outstanding) of the company will remain the same and so will the value of your investment.

It's more of a cosmetic change -- there's no change in Netflix's fundamentals. Why did Netflix decide to go for a stock split then? By lowering its stock price by one-tenth after the split, Netflix's shares will become more "accessible" to its employees who participate in stock options.

Investors generally view stock splits positively, as they often reflect management's confidence that the stock price will continue to rise, driven by the company's growth. That holds true for Netflix. The company has delivered some massive hits in 2025, has plenty of content lined up for 2026 and beyond, and is monetizing its advertising business to add another layer of revenue to an already booming streaming service.

2025: A monster year for Netflix

Netflix is a leading entertainment company that offers TV series, films, and games in multiple genres and languages, available in 190 countries. With the appetite for digital content booming worldwide, Netflix's paid subscriber base has grown exponentially over the years, reaching 300 million.

Netflix's revenue is growing steadily, and so are profits and cash flows. In its latest quarter, the streaming giant posted a 17% increase in revenue and 8% growth in net income. Its free cash flow surged 21% year over year.

Netflix's quarterly view share reached its highest level since the fourth quarter of 2022 in the U.S. and the U.K. Management sees plenty of opportunities ahead to expand Netflix's share of TV engagement in these two markets.

Netflix, in fact, is coming off an exceptional quarter:

• KPop Demon Hunters became its most popular film ever, with 325 million views.
• The boxing match between Terence Crawford and Canelo Álvarez became the most-viewed men's championship fight of the century, clocking over 41 million views.
• Q3 was the best ad sales quarter, putting Netflix on track to double ad revenue in 2025.

For the full year, Netflix projects revenue to grow by 16% to $45 billion and operating margin to increase to 29% from 27% in 2024.

Should you buy Netflix after its stock split?

Since a stock split doesn't change the fundamentals of a company, it shouldn't be a reason to buy or sell a stock. Netflix stock is a solid buy either way.

Because original titles are a major business driver, Netflix can stand on its own even if opportunities to license content from other parties drop as the industry consolidates. KPop Demon Hunters, an original feature animation, is a fine example of innovation at work within original titles.

Netflix is also building out live offerings and games to grow its business. Some of the major live events that Netflix has signed up for include the 2026 World Baseball Classic in Japan, and the 2027 and 2031 editions of the FIFA Women's World Cup.

In the upcoming holiday season, Netflix will introduce party games playable on TV using phones as controllers. This could also be a big opportunity to monetize ads. Ads should contribute a larger share to Netflix's future revenue growth.

Netflix's share price has risen 95,000% since its IPO, as of this writing. With the consensus projecting earnings to grow by 25% in 2026 and 27% in 2026, Netflix stock could have a lot more upside. A majority of analysts are bullish as well, with Pivotal Research analyst Jeffrey Wlodarczak assigning Netflix stock the highest price target of $1,600 per share. That represents a more-than 40% upside in the stock from its current price.

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.