Netflix Stock Split Explained, Earnings Shock, Brazil Tax Hit And Rising YouTube Streaming Battle

Netflix, Inc. (NASDAQ: NFLX) started trending across the internet on November 17, 2025, as the stock began trading on a split-adjusted basis. The streaming giant is right in the spotlight, but not for its shows or originals, but for its stock. A series of major financial decisions, made at a time when competition is intensifying, has shaken investor confidence. Netflix is playing a strategic game because the long-term picture for streaming is fiercely competitive. Talking about Netflix stock in detail and why it is all over the news and a major topic of discussion is due to the massive stock split they announced back in October 2025.

Netflix stock split strategy: Making NASDAQ, NFLX shares affordable for retail investors and improving liquidity

For the uninitiated, Netflix announced a 10-for-1 forward stock split in the latter months of October 2025. After a few weeks, on November 10, 2025, shareholders of record received nine extra shares for every share, meaning that if a person held one share before, they now have 10 shares. On November 17, 2025, the Netflix stock started trading in its split-adjusted form. Unfortunately, while one Netflix share traded around USD 1,100, after the split, one Netflix share dropped sharply to USD 111. However, the total value of a person's holdings has not changed due to this drop in numbers.

According to multiple reports, Netflix adopted this strategy to make shares more affordable for its retail investors and employees with stock options. Not only this, but the step has been taken in order to improve the company's liquidity, as more shares mean more trading and potentially greater stability. This strategy has not only strengthened the company but has also sent a signal to its opponents in the streaming market that Netflix is confident about its future.

Netflix Q4 earnings miss & stock drops 6% as YouTube emerges as major streaming competitor, Revenue, EPS, market outlook

Along with this strategy, Netflix has released its quarterly earnings, sending sweet-and-sour signals to the market. On the one hand, the company registered 17% year-on-year revenue growth, reaching an impressive USD 11.51 billion. On the other hand, Netflix's earnings per share (EPS) have dropped significantly to USD 5.87, well below the USD 6.94 expectations set by Wall Street. According to market experts, it is due to a one-time USD 619 million tax charge linked to a dispute with Brazil's tax authorities.

As soon as the results were published, and in the wake of this expense and major shock, Netflix's share price declined by 6%. Well, the stock's trading pattern has also raised questions among market watchers, as analysts see resistance at USD 113.48 and support at USD 107.33. Meanwhile, the Relative Strength Index (RSI) is around 43, indicating a neutral position.

Netflix shifts strategy as YouTube enters long-form entertainment space

Amid all the stock volatility, the battle in the streaming market makes the story even more interesting, as Netflix faces a new competitor. Apart from the traditional streaming giants like Amazon Prime Video, Disney+, and Max, YouTube is making a strong case for itself in the streaming market against Netflix. The world's biggest digital video platform, YouTube, has started investing in episodic and long-form storytelling. Advertising is also going to play a crucial role; YouTube is planning to encourage longer premium shows to drive deeper viewer retention, as it is built on ad revenue. On the other hand, Netflix is launching new ad-supported subscription plans to generate revenue. Not only this, but both Netflix and YouTube are planning to increase their focus on smartphone content, live programming, and creator partnerships.

Talking about the effect of this 'Streaming War' between YouTube and Netflix on consumers, well, right now, there are no signs of it. However, there are reportedly opportunities for viewers to access more affordable plans and global-language productions, as Netflix and YouTube aim to increase their consumers' daily screen time. With Netflix working towards gaining ad dollars, long-term dominance, and creator attention, it is no longer running behind subscribers. It will be interesting to see whether YouTube's evolution can shake Netflix and other streaming giants' positions at the top in the coming years.

What are your thoughts on this sudden drop in Netflix's share price and its big upcoming streaming war against YouTube, which is just around the corner? Let us know.

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