Netflix's Stock Now a Lot Cheaper After 7-for-1 Split Takes Effect

It now only takes about $100 to buy a Netflix Inc. stock in premarket trade Wednesday, instead of about $700 the day before, as the online video-streaming giant's 7-for-1 stock split has taken effect. The stock, which closed Tuesday at $702.60, was the second highest-priced stock among S&P 500 components, but the split-adjusted closing price of $100.37 now makes it the 119th highest priced. A stock split doesn't change anything for the company in terms of fundamentals, except increase the number of shares outstanding, but it does make it easier for investors to buy a typical number of shares, which could boost trading volume. The shares, which inched up 0.3% to $100.63 in premarket trade, have more than doubled (split adjusted) since the start of the year, while the S&P 500 has edged up 2.4%. The company is scheduled to report second-quarter results after Wednesday's close.