Did Netflix Stock Just Crash 90%? The Truth About the NFLX Split and What’s Really Driving the Stock.।Did Netflix Stock Just Crash 90%? The Truth About the NFLX Split and What’s Really Driving the Stock.
Did Netflix Stock Just Crash 90%? The Truth About the NFLX Split and What’s Really Driving the Stock.
Did Netflix Stock Just Crash 90%? The Truth About the NFLX Split and What’s Really Driving the Stock.
Netflix Stock Just Lost 90% of Its Value. Here's Why I'm Not Panicking.
The 2025 Netflix Stock Analysis: Why the 10-for-1 Split and WWE Deal Change Everything.
If you woke up this morning, glanced at your portfolio, and felt your heart drop into your stomach seeing Netflix (NFLX) at around $111 a share, let me be the first to say: Take a deep breath.
No, the company didn't implode overnight. No, Squid Game 3 wasn't a catastrophic flop.
What you're seeing is the pre-planned, purely cosmetic effect of a 10-for-1 stock split.
Today, November 17, 2025, is the very first day Netflix is trading at its new, split-adjusted price. This is big news, and it’s going to be trending all day.
Here’s the simple, "human-style" explanation:
> Before today: You (hypothetically) owned 1 share of NFLX worth $1,110.
> As of today: You now own 10 shares of NFLX worth $111 each.
> The total value is the exact same: $1,110.
>
Think of it as asking a bartender to pour your one expensive, 10-ounce craft beer into ten 1-ounce shot glasses. You still have the same amount of beer—it’s just easier to handle (and share).
The real question isn't "Why did the price fall?" The real question is: Is Netflix, even at $111 a share, a good investment?
The company has been on an absolute tear, up roughly 25-30% year-to-date before this split. But its valuation is sky-high, and it’s facing brutal competition. Has all the good news already been "priced in"? Or did you just get ten chances to buy into the next great growth story?
Let's ditch the confusing Wall Street jargon. As someone who follows this stuff daily, I've analyzed the latest US news, earnings reports, and strategy pivots. Here's the human breakdown of the bull case, the bear case, and the $5 billion gamble that will define Netflix's future.
## The "Two-Punch" Combo That Changed Everything (The Bull Case)
A couple of years ago, the narrative was that Netflix was dead. Its growth had stalled, subscribers were leaving, and it looked like the streaming pioneer was about to become a streaming fossil.
Then, they executed one of the most brilliant (and controversial) business pivots in recent tech history. It was a simple two-punch combo.
Punch 1: The Great Password "Purge" (That Became a Goldmine)
Remember when Netflix announced it was cracking down on password sharing? The internet lost its collective mind.
We all "borrowed" a password at some point. It was a global rite of passage. Pundits predicted a massive user exodus, a #CancelNetflix campaign, and a PR disaster.
They were all wrong.
The crackdown was an unqualified, spectacular success. It turns out that when you force millions of "moochers" who already love your product to pay for it... they do.
The 2024 and early 2025 subscriber numbers were massive, blowing past analyst expectations quarter after quarter. This single move re-accelerated growth, proved the "stickiness" of the platform, and added billions in new, high-margin revenue.
This story is, for all intents and purposes, complete. Wall Street has seen it, priced it in, and rewarded the stock for it. It was the first engine of the great comeback.
But it’s the second punch that provides the future growth.
Punch 2: The Ad-Supported Money Machine
The other big pivot was launching a cheaper, ad-supported subscription tier. Again, "experts" claimed this would cheapen the brand and that users would hate it.
They were wrong again.
Here’s the deal: most people in the world are price-sensitive. They don't mind a few commercials if it means saving $10 a month.
The results from the last few quarters are staggering:
* The ad-supported tier now accounts for over 55% of all new sign-ups in the markets where it's available.
* The company is on track to double its total advertising revenue in 2025 alone.
This isn't just a "cheaper plan"; it's an entirely new, parallel business. And here’s the secret: this business is potentially more profitable per user than the premium ad-free plans.
Advertisers are desperate to reach the millions of people who have "cut the cord" from traditional TV. Netflix has them. And unlike a random cable channel, Netflix knows exactly what you watch, allowing for hyper-targeted ads that command premium prices.
This ad business is the new growth story. It's why Netflix's recent Q3 2025 earnings in October were so strong, with revenue expected to jump 17% to over $11.5 billion.
But this new ad business needs fuel. And Netflix just made a $5 billion bet on rocket fuel.
## The $5 Billion Pivot: Why WWE Is a Bigger Deal Than Squid Game
This, right here, is the most important piece of US news you need to understand about Netflix's future.
Starting in January 2025, Netflix will be the exclusive new home for WWE's Monday Night Raw.
This isn't just Netflix adding another "show" to its library. This is a transformative 10-year, $5 billion deal that fundamentally changes what Netflix is.
Why would they spend so much on pro wrestling?
It has nothing to do with wrestling. It has everything to do with advertising.
The one thing advertisers love more than anything else is live, "appointment" television.
You might binge-watch Wednesday Season 2 (which, by the way, was a key driver of Q3's success) over a weekend. But millions of fans tune in to watch Raw live at the exact same time every single Monday.
You can't skip the ads.
This is the "Holy Grail" for advertisers. Brands like Coca-Cola, Slim Jim, and Ford will pay an absolute fortune to get their commercials in front of that massive, dedicated, live audience 52 weeks a year.
The WWE deal is the engine that will scale Netflix's ad business from a "nice new revenue stream" into a multi-billion dollar behemoth that can compete with YouTube. This move provides the "unskippable" inventory they need to justify charging top-dollar for ads across their entire platform.
This is the bet. This is the whole ball game for the next five years of growth.
## The Red Flags: What’s the Catch? (The Bear Case)
Okay, so the password crackdown worked, the ad-tier is booming, and the WWE deal is set to pour gasoline on the fire. So we should all just dump our life savings into NFLX stock, right?
Not so fast.
As a human, you have a gut feeling. And if your gut is telling you "this sounds too good to be true," it's picking up on some very real red flags.
Red Flag 1: The "We're Done Counting" Signal
This is, in my opinion, the most telling "bear" signal out there.
Netflix announced that it will stop reporting its quarterly paid subscriber numbers starting in Q1 2025.
Let me translate this for you. When a tech company's most important growth metric (in this case, "subscribers") is about to flatten or slow down, they hate reporting it. They know the headlines will read "NETFLIX GROWTH STALLS."
So, they change the narrative. They'll say, "We're a mature company now! You should look at our revenue and profit (what they call ARM - Average Revenue per Member), not this silly 'subscriber' number."
This is a classic Silicon Valley move. It’s Netflix telling us, loud and clear: "The massive growth from the password crackdown is over. Don't expect those huge 'subscriber-add' numbers anymore."
Red Flag 2: This Stock is EXPENSIVE
The stock split makes shares more accessible, not cheaper.
Netflix is trading at a very high price-to-earnings (P/E) ratio (around 47x). This means you are paying a massive premium for all this good news.
Analysis from firms like Morningstar has flat-out called the stock "fundamentally overvalued," suggesting it’s trading at a 45% premium to what its actual business fundamentals are worth.
When you buy NFLX today, you are betting that its ad business and future content will be so successful that they will justify this-sky high price. If they miss earnings by even a little bit, or if the WWE integration is rocky, this expensive stock could fall hard and fast.
Red Flag 3: The Streaming Wars Aren't Over
Finally, let's be real. The competition is still brutal and getting smarter.
* Disney is bundling Hulu and Disney+ into one, creating a "must-have" bundle for families.
* Amazon Prime Video is a free add-on to a shipping service people can't live without.
* Max (WBD) still has the prestige HBO content that wins all the awards.
Netflix is the king, but it's a very bloody and expensive war to stay king. They have to keep spending billions on new Squid Games and Wednesdays just to keep you from opening the Disney+ app.
## My Final "Human" Take: Are You Buying a Tech Stock or a Media Stock?
So, here's my conclusion, human to human.
For the last decade, investing in Netflix was a bet on a tech company. It was a bet on subscriber growth, disruptive technology, and market domination. That story is now over.
Investing in Netflix today is a bet on a mature media giant.
The 10-for-1 stock split is the perfect symbol of this. It’s the company's way of welcoming in a new wave of mainstream, retail investors. It’s saying, "We're a blue-chip company now, like Apple or Amazon. We're not a scrappy startup anymore."
Your decision to buy, hold, or sell NFLX depends on your answer to two questions:
* Do you believe Netflix can successfully become an advertising powerhouse on par with Google or Meta? (The WWE deal is the ultimate test of this).
* Do you believe they can keep producing global, culture-defining hits (like Stranger Things, Bridgerton, Squid Game) to justify their premium subscription price and their premium stock price?
Personally, I believe this company has proven it can execute flawlessly on massive, difficult pivots. They are no longer a one-trick pony. They are a diversified, profitable, and incredibly smart media empire.
The stock split today just makes it easier for the average person to buy a piece of that empire. Just don't fool yourself into thinking you're getting a "90% off" discount. You're paying full price for the king.
Disclaimer: This is purely analytical and for informational purposes. I am not a financial advisor, and this is not financial advice. Please do your own research before making any investment decisions.
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