Netflix stock price before split trial#

Looking at the Netflix stock split history from start to finish, an original position size of 1000 shares would have turned into 14000 today. This does not always happen, however, often depending on the underlying fundamentals of the business. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. When a company such as Netflix splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. For example, a 2000 share position pre-split, became a 14000 share position following the split.

This was a 7 for 1 split, meaning for each share of NFLX owned pre-split, the shareholder now owned 7 shares. NFLX's second split took place on July 15, 2015. For example, a 1000 share position pre-split, became a 2000 share position following the split. This was a 2 for 1 split, meaning for each share of NFLX owned pre-split, the shareholder now owned 2 shares. The first split for NFLX took place on February 12, 2004. In particular, the slowing growth in the key international segment could challenge Netflix's relatively high valuation, especially since the stock sports a triple-digit price-to-earnings ratio because of investor perceptions of strong growth prospects.Netflix (NFLX) has 2 splits in our Netflix stock split history database. For instance, the stock fell 12% in April, following a quarterly report that included sluggish guidance for the second quarter, and relatively small numbers of new subscribers. Part of the reason why Netflix stock hasn't performed well after its 2015 split is that it hasn't been able to live up to investor expectations. Hastings was reported as saying that the reduction in Netflix's share price would increase access to shareholders, making it easier for investors to buy shares of the company. The company added 3.28 million subscribers in the second quarter alone - more than double its total subscriber count from 2004.Īlthough net income for the quarter was fairly low, at $26 million, previous quarters had seen bottom-line figures of as much as $83 million. Having added the streaming video service, Netflix boasted 65 million members worldwide in the second quarter of the year, with 42 million domestic subscribers, and 23 million international customers. As CEO Reed Hastings noted at the time, the split 'reflects the strong organic and sustained growth of the Netflix model,' and he predicted further growth and sustained momentum in subsequent years.įast-forward to 2015, and Netflix looked a lot different.

Churn had fallen below the 5% mark to reach record lows, and the company had just reported net income of $2.3 million.

Netflix stock price before split trial#

The company was in hyper-growth mode, bringing in 444,000 new trial subscribers in the fourth quarter of 2003, to bring its total subscriber count to just shy of 1.49 million.

Why Netflix split its sharesīack in 2004 when Netflix first split its stock, the business looked a lot different than it does now. Once more, in the time since the 7-for-1 2015 split was completed, Netflix stock hasn't made any major moves, falling slightly over the past year. Netflix wasn't as quick to split its shares again, but eventually, the company decided that it made sense to bring its share price back down toward the $100 range. Netflix stock remained stagnant for several years following the 2004 split, but in the rebound from the recession of 2008, the stock climbed from $18 per share to upward of $700 per share by 2015. Between October 2002 and January 2004, the company saw its shares climb by more than 1,500%, and when the stock approached $80 per share, Netflix made the decision to do a traditional 2-for-1 split. Both of Netflix's stock splits have come following periods of extremely strong stock performance.