Will Netflix Announce a Stock Split This Week?

(NASDAQ: NFLX) is on the clock. The company behind the world's leading premium video streaming service reports its fourth-quarter results on Tuesday afternoon, the first trading day of the holiday-abridged market week. Expectations are high, but so is Netflix's share price.

Netflix stock soared 83% in 2024, hitting a new all-time last month. Netflix is now a 17% gain away from crossing the $1,000 mile marker. A strong financial update this week could make that happen. If not, a couple of analysts believe that the shares will be trading in four figures later this year. It wouldn't be a surprise if Netflix goes ahead and announces a stock split after Tuesday's market close if its report is even somewhat decent.

Expectations are high for Netflix and its fresh financials. Its guidance in mid-October called for a 15% revenue increase for the fourth quarter, in line with the 15% year-over-year jump it posted in the third quarter. The news should be even better on the other end of the income statement. Operating margin, the only metric other than revenue that Netflix provides as guidance, is expected to clock in at 22%. That's 510 basis points ahead of the 16.9% operating margin it posted in the prior year's fourth quarter.

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Source Fool.com