When a vertical stream of liquid is high enough, usually the stream starts to fragment into drops. The standard explanation for that that I believe is that the falling liquid is sped up, so the stream narrows, and at some point the stream is narrow enough that droplets are a lower energy state from a surface tension POV.
I today noticed that streams of my shower gel either never fragments into drops, or they require a height that I cannot provide before that happens.
@robryk shower gel may behave differently due to high viscosity. The internal forces, similar to friction is providing a balancing counter force to acceleration that may not be there in water.
I think you are referring to tide forces, or what is known as spaghettification when it happens around very strong gravitational gradients like black holes.
I'm not sure if that is what happens to a falling stream of water near the Earth because of the effects of aerodynamic drag. The water will reach terminal velocity very quickly.
It's an interesting problem, though.
Yes, aerodynamic forces wouldn't be very much at velocities obtained after falling only a few centimeters.
If the stream of water was to suddenly become "disconnected" at the top (at the faucet) then the stretching doesn't continue (I think), and eventually, if it falls far enough, it would form into a sphere. So the connection to the fixed faucet has something to do with it, I think.
FYI I forgot to mention it at the time but the phenomenon of water breaking up in the stream is called Plateau–Rayleigh instability
https://en.wikipedia.org/wiki/Plateau%E2%80%93Rayleigh_instability
@Pat @freemo "Very quickly" still leaves an observable portion of the stream where this hasn't happened yet:
If you open your tap just a little bit, you'll notice that the stream narrows downward, and at some point breaks into droplets.
The narrowing obviously is caused by the water still accelerating: the total volume-based flow of water is conserved, so the crosssectional area of the stream is inversely proportional to the speed.
Also note that terminal velocity of a stream should be much higher than that of a droplet, because only viscous friction slows it down (as opposed to having to move the air "sideways" too).