Netflix Approves 7-1 Stock Split
Netflix shares shot $15 higher after the closing bell on the news.
Netflix said Tuesday its board of directors have approved a 7-1 stock split effective July 14.
Netflix shares shot $15 higher after the closing bell on the news after having closed 1 percent higher to $681.19 during the regular session.
Netflix's first stock split in its history comes as the leader in streaming media sports a $41 billion market capitalization.
Over the weekend, Oppenheimer lifted its price target on Netflix to $775 and predicted the company would have 239 million subscribers worldwide in 2020. Previously, it had a $610 price target on the shares.
At such a lofty price, small investors balked at purchasing shares of the popular company, but after the stock split, shares will trade closer to about $100 apiece, presumably low enough to lure them in.