Will Netflix Announce a Stock Split This Week?

As Netflix(NFLX 1.87%) prepares to report its fourth-quarter results on Tuesday afternoon, investors are buzzing with anticipation. But there's another question on everyone's mind: will Netflix announce a stock split this week? With the stock price inching towards the $1,000 mark, it's a valid question. Let's dive into the history, potential benefits, and drawbacks of a Netflix stock split.

Netflix has a history of splitting its stock when the share price reaches a certain level. The company has split its stock twice in its history: a 2-for-1 split in 2004 and then a 7-for-1 split in 2015. At the time of its 2015 split, Netflix was trading at around $700 a share. Back in 2004, Netflix only needed to reach $72 a share to enact a 2-for-1 split. Netflix was a much smaller company then and was under different management, but historically the company has chosen to split its stock rather than let it get this high.