Netflix Stock Decline Post-Split
Netflix (NASDAQ: NFLX) experienced a 19% decline in stock value following a 10-for-1 stock split on November 17, 2025. Up until mid-November, shares had risen approximately 25%, surpassing both the S&P 500 and Nasdaq Composite. As of January 9, 2026, NFLX shares are trading under $100, nearing their lowest valuation in three years.
Third Quarter Earnings and Acquisition Concerns
The drop comes after Netflix missed Wall Street’s earnings expectations in its third quarter, despite strong revenue growth. Compounding investor concern is Netflix’s ongoing bid for the film and television assets of Warner Bros. Discovery, which introduces uncertainty around acquisition financing and content integration.
Future Outlook
Despite current challenges, Netflix’s advertising business is growing, with targeted ads enhancing revenue potential. Recent releases such as the final season of Stranger Things could stabilize subscriptions, indicating that while market sentiment is low, the fundamentals of Netflix’s business remain robust.
