Netflix Inc (NASDAQ: NFLX) is extending gains this morning after announcing a 10-for-1 stock split.
The streaming giant will begin trading on a split-adjusted basis on November 17.
While the stock split wouldn’t change the company’s fundamentals at all, it still adds to the overall bull case for NFLX shares.
More importantly, the split isn’t the only reason to consider loading up on it heading into the next year.
Here are the top three reasons to own Netflix stock for the long term.
Why does a 10-for-1 stock split make NFLX shares more attractive
The upcoming 10-for-1 stock split could prove a near-term tailwind for NFLX since it dramatically lowers the share price – making it more accessible to retail investors.
A lower nominal price often attracts new entrants, especially younger or cost-sensitive traders –boosting liquidity and broadening ownership.
Essentially, individual traders who were previously deterred by the $1,000+ price tag may initiate a position in Netflix shares post November 17.
This psychological affordability can drive incremental demand, even though the firm’s valuation remains unchanged.
Historically, splits signal management confidence and often precede upward momentum.
In short, with shares set to trade near $110 post-split, Netflix becomes a more approachable ticker for retail platforms and fractional investors, potentially fueling buying interest, enhancing visibility and supporting price appreciation in the near term.
Potential WBD acquisition warrants buying Netflix stock
Netflix’s reported interest in acquiring Warner Bros. Discovery’s studio and streaming assets adds another bullish layer to its investment case.
With a market cap north of $470 billion and minimal regulatory baggage, NFLX is well-positioned to execute such a deal – especially compared to Comcast, whose bid could face antitrust scrutiny and political resistance.
Netflix’s clean balance sheet, global footprint, and lack of legacy cable entanglements make it a more palatable buyer.
If successful, the acquisition would supercharge the streamer’s content moat with HBO’s prestige programming and Warner Bros.’ blockbuster IP, including DC and Harry Potter.
The strategic fit and deal feasibility make this a credible catalyst for sustainable long-term upside in NFLX stock.
Wall Street recommends owning Netflix heading into 2026
Finally, Netflix stock are worth buying heading into 2026 also because their valuation has turned much more compelling in recent months.
Since late June, the mass media and entertainment conglomerate has lost over 15%, compressing its valuation (forward price-to-earnings P/E) multiple enough to make it more attractive relative to its growth profile and strategic momentum.
Wall Street firms remain bullish as ever on Netflix stock as well.
According to Barchart, consensus rating on the streaming company remains at “moderate buy” – with price targets going as high as $1,600, indicating potential upside of another 40% from here.
All in all, with a 10-for-1 stock split on deck and a possible WBD acquisition in play, Netflix Inc is positioning itself for a new phase of scale and content dominance.
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