netflix
Netflix has given great news for its investors. The company has announced a 10-for-1 stock split (dividing shares in 10 parts). That is, any investor who holds one share of the company till November 10, 2025, will get 9 additional shares. This step has been taken to make Netflix shares more affordable.
What is stock split?
Simply put, the company divides its shares into smaller parts so that its price appears lower, but the total value of the investor remains the same. For example, if someone has 1 share of Netflix worth Rs 1,200, then after the split he will have 10 shares, and the price of each share will be Rs 120, the total value will remain the same Rs 1,200. This stock split of Netflix will be implemented after November 14, 2025 and shares will trade at the new price from November 17, 2025.
Netflix quarterly report
The company has registered 17% year-on-year revenue growth in the third quarter. This increase was due to increase in the company’s membership, adjustment of subscription rate and increase in advertising income. However, the company’s operating margin declined from 31.5% to 28%, attributed to a $619 million one-time expense related to a tax dispute in Brazil. Due to this, the company’s profit decreased by about 5 percentage points.
forward estimate
Netflix said that if this tax expense had not been incurred, the company would have exceeded its profit target. The company’s earnings per share (EPS) were $5.87, which was 9% higher than last year, but $1 less than expected. The company expects revenue to grow again by 17% in the fourth quarter of 2025 and operating margin to be 23.9%. Netflix’s total revenue for the full year 2025 is expected to be around $45.1 billion. Which is an increase of 16% from last year.