Netflix splitting stock seven times

Cementing its status as a Wall Street darling, Nasdaq-listed streaming service Netflix is performing a seven-for-one stock split.

This means shareholders will now hold seven common shares for every one they previously owned, making it easier for a wider spread of investors to buy into the company.

Netflix stock price has been on an upwards curve for more than five years, though it had a small dip in 2011 when it attempted to split its DVD and streaming businesses into two separate products.

The market reacted well to the stock split, with shares closing at US$681.82. After-hours trading saw that spike at US$705.34.

The stock split officially takes place on July 14 and will take the shape of a stock dividend. The stock price per share will fall by about a sixth, but if current trends continue will rise and deliver more value to shareholders.

Netflix is currently expanding internationally, and expects to be in 200 territories by the end of 2016. It is launching in Spain, Portugal and Italy.
Research this week also showed Netflix is already dominating the Australian market, just four months after launching in the territory.