1 Stock-Split Stock to Buy Now -- It's Up 88,900% Since Its IPO and History Says Shares Are Headed Higher

Core Insights - Historical trends indicate that Netflix's stock split may lead to a significant increase in share price over the next year, with Wall Street analysts supporting this view [1][3][10] - Netflix's market value stands at $443 billion, suggesting potential for further growth [2] Stock Split Impact - Research from Bank of America shows that stocks typically outperform the S&P 500 by an average of 13.5 percentage points in the 12 months following a stock split announcement [3] - The average stock has returned 25.4% during the same period since 1980, implying that Netflix could reach $136 per share by October 2026, representing a 27% upside from its current price of $106 [5] Competitive Advantages - Netflix is recognized as the leading streaming service, with significant advantages such as no legacy assets and being a pioneer in the industry, which aids in subscriber accumulation [8] - The company benefits from a virtuous cycle where more subscribers lead to better content development, reinforcing its market leadership [8] Financial Performance - In the third quarter, Netflix reported a 17% revenue increase to $11.5 billion, although GAAP net income rose only 8% to $2.5 billion due to a $619 million expense related to a tax dispute [9][10] - Without this expense, net income would have increased by 34%, surpassing Wall Street's expectations, yet the stock experienced a sell-off, currently trading 14% below its record high [10] Analyst Outlook - Among 52 analysts, the median target price for Netflix is $139 per share, indicating a potential 30% upside from its current price of $107 [10]