At Netflix's annual meeting shareholders voted to approve a share authorization, a preliminary step to a share split. CEO Reed Hastings said the next step is for the board to consider a share split, but didn't reveal what ratio he's considering. Sources close to the company say it will be somewhere between a five-to-one split and a 10-to-one split.
This vote appropriately comes on the heels of shares hitting a record in intraday trading. The news of the shareholder vote sent the stock to an all-time high of $651.75 in after-hours trading Tuesday. A share split could make the stock more appealing to retail investors and—crucially for Netflix—more affordable to employees participating in it's stock option program.
Though the stock split certainly doesn't hurt, there's been a slew of news bolstering shares:
Investors applauded Netflix's planned to launch in Italy, Portugal, and Spain in October, as it executes its plan to be in 200 countries by the end of 2016. Market tracking firm IHS forecast that Netflix will top 21 million subscribers in Western Europe by 2019, growing its footprint in the region by a factor of seven times since 2013.
On Monday, Netflix announced it has acquired Brad Pitt's feature film, "War Machine." Investors weren't just applauding Netflix's ongoing ability to snag star power, but the company also showed it's flexibility in the convergence of traditional and digital media. In addition to putting the film on its service, Netflix will be offering a limited theatrical run of the film in the fall so it can qualify for awards—the Oscars and Golden Globes.
That's right, Netflix could be nominated for an Academy Award. The fact that Netflix has even put itself into the running for the industry's highest accolade speaks to Hastings' willingness to expand Netflix's reach.
The success of Netflix's original content continues: On Friday the critically acclaimed "Orange is the New Black" returns for a third season. For Netflix's stock to keep up this momentum, it's all about user numbers. For now, at least, with more content to binge watch available for their Netflix queue, investors are confident it'll be able to maintain that growth.
What's Netflix stock doing now? (Get the latest quote here.)