NFLX doing a 10 for 1 stock split.

I’ve been trading WBD for years…at $22/sh is the worst time to dabble.

I think Netflix is shifting to gimmicks at this point. They won the streaming wars, which means the next step is transitioning out of being a growth stock.

The fact they’re starting to bid up live sporting events is an ominous sign. I’d argue the sports channels that are keeping cable alive, are also the reason for its downfall. 100 channels, and abc/espn is 20% of the bill. That’s how you get grandma to move to Netflix…now she has to subsidize Jake Paul fights, and next year she’ll need to absorb NFL fees. She might as well return to cable where she’s allowed to channels during the ads.

I almost bought Costco when it fell below $900, but couldn’t get over the 50 p/e. So I bought target instead…talk about a hindsight WTF moment.

I WILL BE BUYING!

What’s the reason for buying after the split and not now?

My Walmart, AMZN, and AAPL says hello.

like I said, it’s purely psychological and completely irrelevant to “value” especially now that brokerages are allowing fractional share purchases. One share of pre split NFLX is worth exactly the same as 10 shares post split and there is no correlation between a stock split and future stockholder equity…none.

here’s another example…SHOP split in 2022 1/10 at 350 a share down to 35. It’s back at equivalent value now in 2025, three years later. There are plenty of tickers trading much higher market cap wise post split (mostly tech) but that has nothing to do with the split itself…it’s because revenues grew.

splits are done to make shares “more affordable” to individual investors and to play on the psychology of “cheap vs expensive”

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no reason at all
stock splits are a gaming method for retail investors, purely psychological

a 1/10 split simply means 10x the number of shares in the float, at a lower price so morons can say “hey look how cheap NFLX is now!”

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My NVDA says hello

Splits share the same arguments as ETF inclusions.

There’s a ton of sky screaming that being an S&P 500 company doesn’t change a company’s valuation. But at the end of the day, if someone is buying your shares that wouldn’t otherwise, it should increase share value.

The same holds true for stock splits. Someone investing a couple hundred dollars a month isn’t buying a share of Netflix for $1100, but I guarantee that person would buy an $11 share after a 100/1 split.

On the other side, you can make the same argument evolving about the have/have not
economy… Who GAF about a retail investor that can only invest $100/mo.?

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splits are done to make shares “more affordable” to individual investors and to play on the psychology of “cheap vs expensive

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Ill add that splitting also makes the options market a lot more attractive.