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The stock market appears to be in turmoil right now. Many of the hottest tech names are sinking, as investor sentiment sours on the future of the economy, uncertainty builds around an interest rate cut path given inflationary pressures, and spending is being called into question by many of the mega-cap tech names which are driving the economy forward.
Netflix (NFLX) announced a 10-for-1 stock split and now trades around $113.
Netflix reported 17% revenue growth to $11.5B last quarter.
Netflix captured 8.6% market share of overall television viewing last quarter.
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This bearishness presents investors with an intriguing dilemma. Is now the time to buy into this selling pressure, and wait for a rebound? After all, in recent years, V-shaped recoveries have become the norm?
Or, could this time be different (or, similar to past crashes)? We’ll have to wait and see. Thankfully, the jury remains out on this front, and there’s plenty to discuss.
One stock I think is particularly compelling given this increasing uncertainty is Netflix (NASDAQ:NFLX). The streaming giant just announced a 10-for-1 stock split, and is now trading around the $113 level at the time of writing (up 3% on the day).
Let’s dive into whether this momentum can be maintained.
Thinkstock
Road sign showing a split in the road
I should be clear – stock splits don’t change anything fundamentally about a given company. Dividing one’s company up into more shares is almost the same thing as taking a pizza, and cutting it into more slices.
That said, moving toward a share price that’s no longer in the four-digit range and is in the low-three-digit range can increase breadth in terms of a given company’s investor base. With Netflix stock trading well above $1,000 per share prior to this split, some investors who are…
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