Netflix announces 10-for-1 stock split. Shares are gaining.

Netflix (NFLX) stock is getting a boost in extended hours after the streaming company announced a 10-for-1 stock split. Shares will begin trading at an adjusted basis starting Monday, November 17.

Asking for a Trend host Josh Lipton discusses the breaking headline.

To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend.

Video Transcript

00:00 Speaker A

Breaking news, Netflix announcing it is splitting its stock. and Netflix shares jumping in after hours trading here.

00:07 Speaker A

It's a 10 for one stock split, meaning every share that someone owns, they will now have 10 shares.

00:15 Speaker A

While the price of the stock will appear lower, the value of someone's investment will stay the same.

00:20 Speaker A

Companies often make this move when the price of the stock gets high and Netflix closed on Thursday just above $1,000 each.

00:29 Speaker A

Stock is currently one of 10 stocks in the S&P 500 with a price above $1,000.

00:36 Speaker A

Company saying in a statement, the split will make the stock more accessible to employees who participate in the company's stock option program.

00:46 Speaker A

Trading on a split adjusted basis is set to begin Monday, November 17th and applies to shareholders of record as of the close of trading on November 10th.

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