Netflix stock is down 31% since the company completed a 10-for-1 stock split after the trading session on Nov. 14, 2025, a sharp drop for a company that had once seen its shares climb to a split-adjusted $133.91 from $16.64 per share almost one year earlier. The latest slide leaves Netflix shareholders facing a stock that trades at about 25 times earnings, far below the 63 multiple it carried by mid-2025.
That is why the name is back on screens today. Netflix is still one of the largest streaming services in the market, with more than 325 million subscribers across more than 190 countries, and investors are trying to decide whether the lower valuation is enough to offset the post-split weakness. A year ago, the share price reflected a run that had turned approximately eightfold by mid-2025, showing how quickly the market had moved from caution to enthusiasm.
The pressure on Netflix stock also follows a broader shift in how Wall Street is pricing the company. Netflix had a price-to-earnings ratio of 15 in 2022, the same year it began running ads, and the multiple then climbed as the business kept expanding. At the same time, Netflix was still trying to prove that a streaming-first model could support premium pricing even as Disney, Apple and Comcast pushed harder into TV and streaming of their own.
That competitive backdrop matters because Netflix was not only selling subscriptions; it was trying to win the content and distribution fights that define streaming. The company was among the first to build unique content as rivals crowded into the market, but it also lost a bidding war for Warner Bros. Discovery to Paramount Skydance, a $111 billion deal that would have given Netflix the content libraries of Warner Bros., HBO Max and Discovery Channel. It also was outbid by Fox for control of Roku, another reminder that scale has not guaranteed victory in every strategic contest.
The friction for investors is that the valuation has cooled even as the business remains huge. Netflix stock is cheaper than it was at mid-2025 levels, but the market is still asking whether a 25-times-earnings multiple is enough for a company that has already turned into a global giant. That question now sits over the shares more than the split itself, and the next move in Netflix stock will depend on whether growth in ads and subscribers can justify a reset that has already wiped out nearly a third of the post-split value.
