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The 'Efficient' Market Prices In NFLX 7-For-1 Split
Welcome to the new normal efficient "market" - where 7 sevenths are worth 3.5% more than the whole...
If a 7-for-1 stock split is good for 3% then a 700-for-1 should be enough for 300% - get back to work Mr. Hastings.
Just a gentle reminder to the algos... NOTHING CHANGED!!
And of course, so begins CNBC's idiocy contemplating how long before NFLX at its new lower price will be included in The Dow.
A gentle reminder of what happened the last time NFLX stock split...
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We are getting really close to the shit storm that is going to hit us. Markets are way too calm, with not a care in the world. This will end. Just the timing, as always.
C'mon guys ... if they didn't split the stock, they would run out of stuff to buyback!
Regards,
Cooter
Mo' "advising" feez
This is not the "new normal." Stocks have traded up on split news forever. It may not make sense or fit the Efficient Market Hypothesis, but let's not pretend this is new to this market.
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September will be hell for the markets. End game only a few months off now
Netflix, Tesla and a few others are the bowling stocks of this decade.
"Just a gentle reminder to the algos... NOTHING CHANGED!!"
Psychologically yes something did change. People who normally would not have purchased neftlix at $600 will now tell themselves "oOoOoO now I can get in"
So while nothing actually changed the perception of price did.
Stock market prices discount the value of future cash flows.
You can't increase your revenue or return on invested capital through accounting tricks. No value was created by this announcement. Nothing changed.
the PERCEPTION changed. people by mo-mo stocks based on PERCEPTION not reality, so yes something did change
Looks like you are both on to it. The facts did change. There are now more shares outstanding.
...The fact is that peoples opinions of the facts are almost always changing.
Shaquele O'Neil was on bloomberg tv today explaining his new trading platform that allows common people to invest in silicon valley IPOs. maybe lebron will be able to develop a platform that allows common people to split stocks 7 ways like netflix has done here.
So the logic is that if I cut my pizza into 8 slices, I can feed 8x as many people? And why don't they teach this in school -- Common Core b*stards!
no, the logic is "I can't sell a pizza for $6 but I can sell the 8 slices at a dollar a piece" and guess what? it works, an example is loose cigs on the street, the total earned is WAY more than the cost of a pack
You didn't use your friend Mr. 10 to solve that problem.
The nation’s brightest minds were enticed into Wall Street by the massive rewards.
This elite was set to work on building the biggest ponzi scheme the world has ever known on the back of sub-prime mortgages.
They came up with securitisation, CDOs, CDO(squared)s, synthetic CDOs, CDSs in their efforts to build the ponzi scheme.
Seven years after the bubble blew the global economy is still crippled, they had succeeded.
"It’s nearly $14 trillion pyramid of super leveraged toxic assets was built on the back of $1.4 trillion of US sub-prime loans, and dispersed throughout the world" (pg 404, “All the Presidents Bankers”, Nomi Prins).
This is probably the least productive allocation of human resources the world has ever known.
The end is nigh.
sarc: yeah but we don't really have anything better for the best and brightest to work on. like the drought, cure for cancer, or things like leaking nuclear reactors.
There is a logic to this in normal functioning markets. Stocks are sold in "round lots" of 100 shares. You can buy less than 100 (an odd lot) but the bid/ask spread is higher.
More people can afford a round lot at one seventh the price..., if there were any retail investors left.
Good time to make the split though.
Good time for insiders to make the split, also.
Next time I order pizza, I'm going ask for it uncut and demand a discount.
Does this stock split make it's 180 PE and 0 yield a better investment??? Relative to all my metrics, the US markets are WAYYYY overpriced. Comparing the NYSE to the Treasury market and declaring the NYSE relatively well priced is like comparing two steaming piles of dookie and saying one smells relatively good. Netflix is my poster stock for the markets.
an addict can't buy a kilo of coke, so you split into dime bags so they can
NFLX was causing some to be priced out, so they spit it into dime bags trying to lure in more addicts
They just pushed it to 700 to make the split calculation easier
What they're pricing in is more average Joes buying the stock now that it appears cheaper. Duh?
more retail in = more pros out?
at what point does icahn take his stupendous return on this piece of shit momo and exit stage left?