Key Points
-
Stock splits have surged in popularity recently, signaling strong performance from companies.
-
Netflix’s stock has increased 810% over the past decade, but is down 38% from its peak, with fourth-quarter revenue of $12 billion.
-
ServiceNow, after a 48% drop over the past year, reported $3.53 billion in fourth-quarter revenue, with 91% of analysts rating it a buy.
Stock splits are gaining popularity as a sign of robust business performance, with companies like Netflix and ServiceNow attracting investor interest. Historically, stock-split stocks produce average returns of 25% in the year following announcements, compared to 12% for the S&P 500.
Netflix (NASDAQ: NFLX) has gained 810% over the past decade, achieving fourth-quarter revenue of $12 billion but facing a 38% decline from its peak amid concerns over a potential acquisition. Analysts project a price target of $135, suggesting a potential upside of 62% from current levels.
ServiceNow (NYSE: NOW) experienced a 48% drop over the last year but reported fourth-quarter revenue of $3.53 billion, a 21% increase. Ninety-one percent of analysts rate it a buy, with a target price of $260, indicating a potential upside of 123%.
