From Yahoo Finance: 2025-06-07 04:05:00

Netflix shares have soared past $1,200 per share, up 40% this year alone. Revenue in the first quarter of 2025 reached $10.5 billion, with earnings per share increasing by 25.2%. The company is experiencing strong momentum, making a stock split a possibility soon.

Netflix’s stellar performance is fueled by membership growth, price increases, and a growing advertising business. Management expects revenue to increase by 11.5% to 14.1% year over year. With a stock price much higher than other tech leaders, a split could make shares more accessible to investors.

Netflix hasn’t split shares since 2015 but may be due for one given its high stock price. Though a split won’t affect fundamentals, it could lower the share price and increase accessibility. The company’s strong business momentum and growth prospects make a split likely.

Investors are already pricing in Netflix’s strong performance, with shares trading at a high valuation multiple. Double-digit revenue growth and margin expansion targets could lead to significant earnings per share growth. Despite the high valuation, investors are betting on continued growth from the streaming giant.

With a surging stock price, impressive revenue growth, and a fast-growing advertising business, Netflix is a top contender for the next big tech stock split. While no plans have been announced, it may be overdue.

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**Stock Advisor returns as of June 2, 2025. Daniel Sparks and his clients have no position in the mentioned stocks. The Motley Fool has positions in and recommends Apple, Meta Platforms, Microsoft, Netflix, and Nvidia.

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