3 Stock-Split Stocks to Buy that Could Soar As Much as 40%, 35%, and 640%, According to Wall Street
The Motley Fool·2025-12-27 12:15

Core Viewpoint - The article discusses the potential investment opportunities in companies that have recently executed stock splits, highlighting that these splits can make shares more affordable and liquid without altering the company's overall market value. Group 1: Netflix - Netflix executed a 10-for-1 stock split on November 17, 2025, with shares currently trading around $94, and analysts have a median 12-month price target of $133, indicating a potential upside of about 40% [4][6] - The company is benefiting from its ad-supported tier launched in late 2022, with expectations to double advertising revenue by 2025, reaching 190 million monthly active viewers [5] - In Q3 2025, Netflix reported a 17% year-over-year revenue increase to $11.5 billion, driven by successful content such as the animated film "KPop Demon Hunters" and the second season of "Wednesday" [9] - Netflix's acquisition of Warner Bros. Discovery for $82.7 billion is expected to enhance its content library and market position, despite regulatory scrutiny [10] Group 2: Broadcom - Broadcom executed a 10-for-1 stock split on July 15, 2024, with shares trading around $350, and analysts project a potential upside of 35% to 58% over the next 12 months [11] - The company reported record revenue of $64 billion for fiscal year 2025, a 24% increase from the previous year, with AI semiconductor revenue reaching $20 billion, up 65% year-over-year [12][13] - Broadcom's acquisition of VMware in November 2023 positions it as a full-stack AI infrastructure vendor, contributing to stable, high-margin recurring revenue [15] Group 3: ServiceNow - ServiceNow executed a 5-for-1 stock split on December 18, 2025, with shares trading around $155, and analysts have a median 12-month price target suggesting a potential upside of 640% [18] - The company reported Q3 2025 subscription revenue of $3.3 billion, a 22% increase year-over-year, and has a remaining performance obligation of $11.4 billion, up 21% [23] - ServiceNow is strategically positioned to capitalize on the generative AI boom, with its Now Assist suite expected to reach $1 billion in annual contract value by the end of 2026 [21]