Prediction: This Artificial Intelligence (AI) Software Company Will Split Its Stock in 2025

Stock Split Mechanics - A stock split reduces the share price by a factor while increasing the outstanding share count proportionally, leaving the market capitalization unchanged [1] - The primary purpose of a stock split is to make shares more accessible to retail investors by lowering the per-share price, even though it does not change the underlying valuation [9] ServiceNow's Stock Performance - ServiceNow's stock has gained over 4,000% since its IPO in 2012 and is currently trading near all-time highs [3][6] - The company's shares soared by 50% in 2024, significantly outperforming both the S&P 500 and Nasdaq Composite indices [13] ServiceNow as a Stock Split Candidate - With a current share price of approximately $1,000, ServiceNow is considered a prime candidate for a stock split [13] - The company has never completed a stock split in its history as a public company, despite its market-beating performance and rising share price [4] ServiceNow's Growth Prospects - ServiceNow is positioned as a compelling opportunity for AI investors, with significant upside potential due to the rising importance of AI in enterprise software [5][12] - The company is a growth stock focused on customer acquisition and cross-selling, with profitability trends often being volatile due to reinvestment in R&D and sales/marketing [10] Valuation Considerations - ServiceNow is trading at a premium to its five-year average EV/Revenue ratio, reflecting ongoing valuation expansion [11] - Traditional profit-based valuation methodologies like P/E may not be entirely appropriate for ServiceNow due to its growth-focused dynamics [14]