"As of the time of this writing, popular stock tracking sites like Yahoo Finance and apps like Apple Stocks are showing that Netflix's shares dropped more than 90% on Friday, when they began the day trading at more than $1,100. Those same charts now show that NFLX shares are trading at "just" around $111 each. But don't panic. Netflix's shares haven't actually lost 90% of their value."
"And even though Netlfix's shares are trading at 90% less than they were on Friday, qualifying investors who owned the shares that day will find they now have nine additional NFLX shares for each one they previously had, meaning the total value of their Netflix shares are the same (provided they did not sell any between now and then, and adjusting for any early-morning trading increase or decrease today, of course)."
Netflix shares briefly appear to have plunged roughly 90% because of a 10-for-1 stock split, not because of a loss in company value. The split was implemented after market close on Friday, November 14, and shares began trading at the split-adjusted price when markets opened on Monday, November 17. Pre-split four-digit prices now appear near $111 in premarket. Qualifying shareholders received nine additional shares for each share held, leaving the aggregate investment value unchanged unless shares were sold or early trading changed the price.
Read at Fast Company
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