If You'd Bought 1 Share of Netflix at Its IPO, Here's How Many Shares You Would Own Now

Core Viewpoint - Netflix has been a significant disruptor in the entertainment industry, and its stock, currently trading over $1,000 per share, is a potential candidate for another stock split [1]. Company History - Netflix was founded in 1997 and went public in 2002 at$15 per share [3]. - The company executed its first stock split in 2004 at a 2-for-1 ratio when shares were around $70 [3]. - In 2007, Netflix introduced a streaming service, leading to a surge in stock price, which reached nearly$700 before a 7-for-1 stock split in 2015 [4]. - An initial investment of $15 would now be worth over$14,000 due to the company's success and stock splits, resulting in shareholders holding 14 shares from the original one [5]. Current Performance and Future Outlook - Netflix has 301 million global paid subscribers, generating $39 billion in revenue and$6.9 billion in free cash flow [7]. - Management projects revenue growth of 12% to 14% and free cash flow growth of 16% for 2025, indicating continued long-term benefits for shareholders [7]. Stock Split Consideration - The chairman has indicated that a lower stock price could make shares more accessible to retail investors, suggesting that another stock split could be plausible [6]. - However, investing solely based on the anticipation of a stock split is not advisable, as it does not alter the overall value of the investment [6].