NFLX announces stock split, other
APRIL 13TH 2015: UPDATE: A few observations worthy of consideration:
- NFLX announces a stock split—well, sort of. On Friday the news was everywhere that NFLX (the stock was around $460) announced a stock split. I’ve gone to several sites and cannot find the details. What is reported is that, in advance of a stock split announcement, the company took their authorized shares to 5 Billion (5,000,000,000), up from 170,000,000. This is right out of Stock Split Strategy #1 (Pre-Announcement).
- What will it be? Will NFLX do a 2:1, a 5:1 or even a 10:1 split? Who knows? Visa (V) just did a 4:1 split. Apple (AAPL) did a 7:1 a few months ago. Ross Stores (ROST) just announced a 2:1 split, as did Starbucks (SBUX). My guess is the NFLX will do a 5:1 to a 10:1 split. It’s just a guess, but all of the new authorized stock gives them some latitude. Stay Tuned. On, the stock was up about $30 today, and a big firm put a $565 price target on NFLX. Netflix news is everywhere.
- The market is now heading into earnings season. Already companies are posting earnings. This is the news that drives stocks up and down.
- A report just came out that 20% of Americans paid 84% of all income taxes. The top 20% of earners make $134,000 plus per year.
- Look at GERN as a potential Covered Call Stock.