Netflix Inc. (NFLX) is getting attention Monday, but not for the usual reasons. The streaming giant's stock began trading on a split-adjusted basis following its 10-for-1 forward stock split, effectively resetting the share price to a more employee-friendly range.
The Split Details
Netflix announced the split plans back in October with a specific goal in mind: making shares more accessible for employees who participate in the company's stock option program. It's a practical move when your stock price has climbed to levels that make equity compensation feel less tangible for rank-and-file employees.
Here's how it worked: shareholders of record as of the close of trading on Nov. 10 received nine additional shares for every share they held. So if you owned one share, you woke up with ten shares, each worth about one-tenth of the previous price. Nothing changed about the underlying value, just the packaging.
The Earnings Context
The split announcement came on the heels of Netflix's third-quarter earnings report, which didn't exactly wow Wall Street. The company missed analyst expectations on both revenue and earnings. Revenue came in at $11.51 billion, which Netflix said grew in line with its own forecast. The company did hit its highest quarterly view share in the U.S. and U.K. since the fourth quarter of 2022, offering some bright spots in the report.
Looking ahead, Netflix guided for fourth-quarter revenue of $11.96 billion, slightly ahead of the $11.90 billion analysts were expecting.
What the Charts Say
From a technical perspective, Netflix is showing some bearish signals. The stock is trading roughly 6.4% below its 50-day moving average of $117.39 and about 2.8% below its 200-day moving average of $113.07, suggesting short-term weakness relative to these widely watched indicators.
The relative strength index sits at 43.01, putting the stock in neutral territory. It's neither overbought nor oversold, which means the next move could go either way depending on what catalysts emerge. Support appears around $107.33, a level where buyers might step in if the decline continues. Resistance sits at $113.48, where sellers could push back.
Netflix shares were up 0.07% at $111.28 at the time of publication Monday. The stock is trading within its split-adjusted 52-week range of $80.93 to $134.11.
