Should You Buy Netflix Before Its 10-for-1 Stock Split on Monday?

"Shares will begin trading on the split-adjusted basis starting Monday. This marks the company's first split in over a decade , following a surge that pushed shares above $1,100. Investors are buzzing about potential short-term gains from heightened enthusiasm, but the real question is whether this event makes Netflix a timely buy. While splits don't alter a company's core value, they often spotlight strong underlying performance."

"In the third quarter, sales climbed 17.2% year over year, marking the strongest pace since 2023. Guidance for the fourth quarter points to a similar 16.7% increase, driven by effective monetization tactics like ad-supported tiers and global expansion. This consistency stems from Netflix's sticky subscriber base - viewers often stay or return due to compelling content, setting it apart from rivals that have struggled or folded."

Netflix will implement a 10-for-1 stock split, its first in over a decade, after shares climbed above $1,100. The split does not change intrinsic company value but increases market attention and may spur short-term enthusiasm. Revenue growth accelerated, with Q3 sales up 17.2% year over year and Q4 guidance around 16.7%, supported by ad-supported tiers and global expansion. Subscriber retention remains strong, making the service a core platform amid competitors. Regional performance showed U.S. and Canada revenue growth of 9% ($4.6B), EMEA 16% ($3.4B), Latin America 27% ($1.17B), and Asia-Pacific 26% ($1B). Non-U.S. markets now provide over half of total revenue.

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