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3 Growth Stocks to Buy in January That Could Issue Stock Splits in 2026
The Motley Fool· 2025-12-29 10:26
Core Viewpoint - Companies like ASML, AppLovin, and Tesla have experienced significant stock price increases in 2025, making them potential candidates for stock splits in 2026 [1][2]. Group 1: ASML - ASML's stock has risen by 54% in 2025, currently trading at $1,072.75 with a market cap of $416 billion [2][5]. - The company is crucial in semiconductor manufacturing, producing extreme ultraviolet (EUV) lithography machines essential for advanced chipsets, driven by the AI boom [6]. - ASML's management projects annualized revenue growth of 7.6% to 13.3% through 2030, with earnings expected to grow over 22% annually for the next three to five years [6][9]. Group 2: AppLovin - AppLovin's stock has surged by 125% in 2025, currently priced at $714.23 with a market cap of $241 billion [2][10]. - The company specializes in software tools for mobile app and game developers, with revenue increasing by 68% to $1.4 billion last quarter [13]. - The mobile ad-tech market is projected to approach $1 trillion by 2030, positioning AppLovin for significant growth [13]. Group 3: Tesla - Tesla's stock has increased by 20% in 2025, currently trading at $475.19 with a market cap of $1.6 trillion [2][14]. - Despite slowing vehicle sales, Tesla is focusing on humanoid robotics, which could represent a multi-trillion-dollar opportunity by 2050 [15]. - The company's high price-to-earnings ratio of 300 times full-year earnings estimates reflects its status as a "story stock," driven by CEO Elon Musk's vision [17].