Just because they are doing a 7:1 split, that does not mean that the stock will all of a sudden become "affordable," at least from a value sense...it may be more affordable from a price per share sense. But you shouldn't base you investment decisions on price per share; rather, you should base it on value. Often, the reason for a stock split such as this is to make the per share price more attractive ("affordable") to investors and nothing more. For example, Berkshire Hathaway (Warren Buffet's company) has never done a stock split on its A Class shares, which is currently valued at around $211,000 per share. All the split means is that there will be more shares at a lower per share price - the total company value remains roughly the same (at least for the time being). For example, if you start with 100 shares at $700 per share, you own $70,000 of stock. After a 7:1 split, you would own 700 shares at approximately $100 per share, so you would still own $70,000 of the stock. It would just be spread out among more shares. At the end of the day, if you believe that the company is over-valued before the split, it will still be over-valued after the split. If you believe that the company is under-valued before the split, it will still be under-valued after the split. If you believe the company is fairly valued before the split, it will still be fairly valued after the split. So, if you have done your research and you feel that Netflix is a good company with good long-term prospects then I would go ahead and buy their stock and see what happens in the long-run.
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