Stock splits tend to excite investors, with some evidence showing stocks outperform post-split. Netflix, with one of the highest share prices, could be next. The streaming giant’s solid growth and upcoming earnings report may lead to a split announcement, potentially boosting its stock further.

While stock splits don’t change fundamentals, they can attract retail investors and media attention. Research shows stocks tend to rise after splits, with Netflix’s history of splits benefiting its growth. A lower share price could also make Netflix eligible for the Dow Jones Industrial Average.

Netflix has seen a 400% gain in the last three years due to strong growth initiatives like advertising and paid sharing. Its upcoming earnings report is expected to show revenue growth and increased earnings per share. Despite a high P/E ratio, Netflix’s dominance in global entertainment suggests continued growth potential.

A stock split for Netflix could kick off its next growth phase. The company’s history of previous splits and potential Dow Jones inclusion make it a likely candidate. As analysts anticipate strong earnings, Netflix’s strategic initiatives and market dominance position it for future success.

Read more at Yahoo Finance: The Most-Anticipated Stock Split of the Fourth Quarter Will Be Announced This Month