Netflix Stock Crashes 90% Or Did It?

Netflix stock fell 90% today, according to Google Finance data but worry not, it’s not really a crash. The shocking drop you see in the Netflix stock price is purely mathematical, not a financial collapse. 

The online streaming company recently executed its 10-for-1 stock split, which multiplies the number of shares while proportionally reducing their price. In short: nothing’s broken at Netflix. Your holdings haven’t lost value; they’ve simply been divided into smaller pieces.

Let’s understand Netflix stock split, what it means for investors and Netflix share price.

Netflix Stock Split: What Actually Happened

On October 30, 2025, Netflix’s board approved a 10-for-1 forward stock split. The record date was November 10, and the new split-adjusted shares began trading on November 17, 2025.

A stock split is when a company decides to divide each of its existing shares into several smaller, cheaper shares, so more people can afford to buy them. The total value of your investment doesn’t change; you just end up with more shares at a lower price each.

Here’s what that means:

If you owned 1 share of Netflix, you now own 10 shares, each worth one-tenth of the old price. So, if the Netflix stock was trading at $1,100, it’s now around $111 post-split, as per Google Finance. The value of your total investment hasn’t changed, you just own more shares at a lower price per share.

That’s why the Netflix stock price shows a “90% fall”, it’s just basic arithmetic.

How Stock Splits Work

Imagine you order a large pizza and slice it into 10 pieces instead of one big slab. You still have the same pizza, but now it’s divided into smaller, more manageable slices. That’s exactly what a stock split does. 

It increases the number of slices (shares) without changing the total pizza (company value). So when you hear that Netflix stock crashed 90%, remember, it’s not the pizza that got smaller, just the slices.

Why Did Netflix Decide to Split Its Stock?

Netflix followed the footsteps of major tech peers like Apple, Amazon, and Nvidia, all of which have used stock splits to widen investor participation. Here’s why Netflix did it:

1. To Make Shares More Affordable: With the stock trading above $1,000, buying even a single share felt expensive for retail investors. The split brings the Netflix stock price down to around $110, making it more approachable for smaller investors and employees participating in stock plans.

2. To Improve Liquidity: A 10-for-1 split increases the number of shares in circulation, improving market liquidity. More shares mean smoother trading, tighter bid-ask spreads, and better price discovery.

3. To Expand Retail Participation: Retail investors often prefer stocks that “look affordable.” By lowering the per-share price, Netflix is opening the door to a broader investor base, including international investors from India who buy U.S. stocks via platforms like INDmoney.

4. To Signal Confidence: Companies typically announce splits after a period of strong performance. It’s a subtle message from management — “We’re confident our stock will continue performing well.”

Does Stock Split Change Netflix’s Value?

A stock split doesn’t change Netflix’s market cap or fundamentals, it just changes how the shares are divided. Think of it like exchanging a ₹2,000 note for ten ₹200 notes, your total money remains the same.

• Market Cap: Unchanged
• Earnings per Share (EPS): Divided by 10 (because there are 10× more shares)
• Ownership: Exactly the same percentage as before

The split affects appearance, not substance.

What This Means for Netflix Stock?

1. Psychological Advantage: Retail investors perceive lower share prices as more attainable, even though valuation remains identical. This psychological factor often increases short-term demand.

2. Higher Trading Volumes: Stock splits usually bring a surge in trading activity. Expect Netflix stock to see increased volumes as new investors jump in post-split.

3. Easier Portfolio Allocation: Investors can now buy more shares for the same investment amount, making diversification simpler. For Indian investors, owning Netflix stock is now more practical even with smaller USD allocations.

4. No Change in Fundamentals: The split doesn’t alter Netflix’s revenue, margins, or subscriber base. The company remains a global streaming leader with over 300 million paid members and a growing ad-supported tier.

Why This Matters for Indian Investors

• Lower Entry Point: More Indian investors can now participate in Netflix’s growth story.
• No Tax Event: Stock splits are not taxable, capital gains apply only when you sell.
• Fractional Investing: Still available on platforms like INDmoney.
• Global Diversification: The split makes adding Netflix stock to US Stock Portfolio smoother for first-time investors.

Netflix Stock Split: Key Dates to Remember

Sources: Netflix Investor Relations, Reuters, CNBC, MarketWatch

Netflix Stock Price: A Fall That Isn’t One

So, did Netflix stock really crash 90%? Visually yet but not financially. The stock price dropped only because of its 10-for-1 split, not because investors lost confidence. Your investment value remains the same; you just have more shares now.

Netflix’s move mirrors a trend among major tech companies: improving share accessibility, deepening liquidity, and signaling long-term optimism. So the next time you see “Netflix stock price down 90%” trending, remember: It’s not panic, it’s just the pizza being sliced into ten equal pieces.

Disclaimer:

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