3 Reasons Why Netflix Is Down 31% Since Completing Its 10-For-1 Stock Split

Netflix has fallen 31% since completing its 10-for-1 stock split in November 2025, pressured by three distinct headwinds outlined by The Motley Fool.

The streaming giant lost two high-profile acquisition targets—Paramount and Roku—to competitors, eliminating potential growth catalysts. Heightened competition from major streaming services has intensified the fight for subscribers and pricing power. A valuation reset has also compressed the stock, though it now trades at approximately 25x earnings, down from previously elevated price-to-earnings multiples.

The November 2025 stock split—a 10-for-1 ratio—was meant to improve share accessibility but hasn't arrested the decline. Netflix's inability to close the Paramount and Roku deals leaves the company more reliant on organic growth in an increasingly saturated streaming landscape.

The current 25x P/E represents a material contraction from recent levels, potentially setting up an entry point for investors willing to navigate ongoing competitive pressures. The valuation adjustment reflects market skepticism about Netflix's ability to defend margins and grow share without transformative M&A.