Netflix just announced a 10-for-1 stock split, which is the most anticipated split on Wall Street this year. Since its IPO, Netflix's stock price has risen over 103,000%, and there is still room for rise.

Data support: In the 12 months following a stock split, the average rise exceeds 25% (compared to 12% for the S&P 500). Netflix itself also confirms this - after the 2:1 split in February 2004 and the 7:1 split in 2015, it continued to rise.

Why can it still rise? The core reasons are three points:

**Execution power continues** — Netflix's business model is straightforward and brutal: create content → raise prices → create more content. Q3 earnings report shows a 17% year-on-year revenue increase in the US and Canada, with even stronger growth in the Latin American region. Advertising business is expected to double this year.

**Cash Flow Turnaround** — After years of burning money on content libraries, Netflix now has strong free cash flow. This money is used to pay down debt and buy back shares, directly boosting earnings per share.

**Valuation is reasonable** - Based on the expected earnings in 2026, the current PE is about 34 times. If the management continues to execute the strategy until 2030, the profit growth will be very strong, and there will still be room for the stock price to imagine.

Stock splits are essentially a confidence signal from the management—they're telling you, we think it can still rise. Historical data shows they usually aren't blowing smoke.