Possible Stock Splits in 2025: 2 Stocks Up Over 200% in 2 Years to Buy Now

Core Viewpoint - The article discusses the potential for stock splits at Meta Platforms and Netflix, both of which have seen significant stock price increases over the past two years, and highlights the reasons for their strong performance and future growth prospects [4]. Group 1: Meta Platforms - Meta Platforms' stock has increased by 306% over the last two years, with capital expenditures rising from $28.1 billion in 2023 to an expected $65 billion in 2025 [5]. - The company has experienced a 48% increase in income from operations, driven by higher engagement, more ad impressions, and increased ad prices, all attributed to advancements in artificial intelligence [6]. - Meta is investing in generative AI capabilities, which could create significant opportunities, including a potential $100 billion market for business chatbots and advanced marketing tools [7]. - The stock currently trades at a forward price-to-earnings (P/E) ratio of 28, but has a more favorable enterprise value-to-EBITDA multiple of 16, indicating strong cash flow generation and share buybacks [8][9]. - A potential stock split could make shares more accessible to investors, especially as the stock price exceeds $700 [9]. Group 2: Netflix - Netflix's stock has risen by 203% in the past two years, driven by the introduction of an ad-supported membership tier and stricter password-sharing policies [10]. - The company ended 2024 with over 300 million paid subscribers, a significant increase from 223 million prior to the ad-supported tier launch [11]. - Netflix became cash flow positive in 2022, generating $1.6 billion in free cash flow, which grew to $6.9 billion in the following year, with expectations of $8 billion for 2025 [12]. - The company is focusing on increasing ad sales and live programming, which should lead to steady revenue growth without heavily relying on price increases for customers [13]. - With the stock price surpassing $1,000, a stock split could enhance accessibility for investors, although the stock is currently trading at a high valuation of approximately 41 times forward earnings [14][15].