Stock market trends. The euphoria surrounding stock splits has contributed significantly to the rise of Wall Street’s major indexes, which are reaching record highs. Companies like Costco Wholesale (NASDAQ: COST) and Netflix (NASDAQ: NFLX) are often speculated to become candidates for stock splits, with respective share prices nearing $1,000 and $1,300.
According to Bank of America Global Research, firms that enact forward stock splits have averaged a 25.4% return in the 12 months post-announcement, compared to an 11.9% return for the S&P 500. However, both Costco and Netflix have shown little urgency for split announcements, with Costco’s CFO indicating that fractional shares reduce the need for a split. For Netflix, 80.2% of its shares are held by institutional investors, who do not need lower share prices.
Costco has not conducted a forward split since January 2000, while Netflix’s last was in July 2015. As of July 4, 2025, the investor base dynamics for both companies make immediate splits unlikely.
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