Stock Splits Trending Among High-Performing Companies
Stock splits have regained popularity as indicators of strong company performance, with firms like Netflix, Booking Holdings, and ServiceNow excelling in the market. A report from Bank of America indicates that companies that initiate stock splits achieve an average return of 25% in the year following the announcement, compared to the S&P 500’s 12% average gains.
Netflix (NASDAQ: NFLX) recently reported a 17% increase in Q4 revenue, reaching $12 billion, with a diluted earnings per share (EPS) up 30%. The stock has a 70% buy rating from analysts, with an average price target of $111, suggesting 43% upside potential. Booking Holdings (NASDAQ: BKNG) announced a 25-for-1 stock split, saw Q4 revenue expand 16% to $6.3 billion, and has an average price target of $5,915, indicating 45% upside. ServiceNow (NYSE: NOW) also reported a 21% revenue increase to $3.53 billion in Q4, with analysts predicating an 81% potential upside based on an average target of $189.
