Does Netflix's (NFLX) Stock Split and Licensing Push Signal a Strategic Shift in Global Growth?

Netflix recently reported its third-quarter results, including a noncash tax charge related to a Brazilian Supreme Court ruling, and announced a ten-for-one stock split approved by its Board of Directors to increase accessibility for employees in its stock option program. Meanwhile, the company is expanding its global content reach with the runaway success of "KPop Demon Hunters" and new licensing partnerships with major toy makers Mattel and Hasbro, further diversifying its revenue streams beyond streaming. We'll explore how Netflix's significant stock split and global licensing push may influence the current investment narrative and future growth outlook.

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Netflix Investment Narrative Recap

For anyone considering Netflix as a long-term holding, confidence in its ability to balance ongoing content investment with international growth is essential. The recent stock split primarily supports employee participation and is unlikely to significantly affect near-term catalysts or alter the biggest risk, which remains intensifying competition and the associated pressure on margins.

Among Netflix's recent announcements, its licensing partnerships with Mattel and Hasbro stand out, building on the blockbuster global reach of "KPop Demon Hunters." This expansion beyond streaming taps into new revenue streams and showcases the company’s efforts to diversify earnings, which directly supports its ambitions for durable international growth.

But just as global reach offers promise, rising content costs and crowded streaming markets mean investors should not overlook the ongoing risk that...

Read the full narrative on Netflix (it's free!)

Netflix's outlook anticipates $59.4 billion in revenue and $17.7 billion in earnings by 2028. This is based on a projected annual revenue growth rate of 12.5% and a $7.5 billion increase in earnings from the current $10.2 billion.

Uncover how Netflix's forecasts yield a $1350 fair value, a 21% upside to its current price.

Exploring Other PerspectivesNFLX Community Fair Values as at Nov 2025

Simply Wall St Community members submitted 49 fair value forecasts for Netflix, with estimates spanning from US$797.74 to US$1,825.07 per share. While some anticipate strong upside from global expansion and new licensing channels, remember that opinions differ sharply and exploring multiple viewpoints is key.

Explore 49 other fair value estimates on Netflix - why the stock might be worth 29% less than the current price!

Build Your Own Netflix Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

Story Continues

A great starting point for your Netflix research is our analysis highlighting 3 key rewards that could impact your investment decision. Our free Netflix research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Netflix's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NFLX.

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