Netflix share split

Netflix is doing a 10-for-1 stock split on Friday 14 November. If you are one of the 358 Vestact clients that has Netflix in their portfolio, you will notice that on Monday 17 November you will own 10 times more Netflix shares but the share price will be trading at 1/10th of the usual price. In other words, nothing changes to the value of your Netflix holding.

Companies do stock splits for various reasons but the most common one is because the share price has become too high and retail investors are being excluded from buying the share. Netflix currently trades at around $1 100 which is quite chunky.

We welcome stock splits because it makes our lives a lot easier when it comes to client portfolio allocations. In this case everyone wants this, unlike the hit Netflix show Nobody Wants This.

I hope the Booking Holdings management team is paying attention. That stock trades at around $5 000 a share which is crazy.