Stock Splits Loom for Meta and Netflix: Positive Outlook Ahead

Stock splits are gaining traction, especially for Meta and Netflix. The potential splits for these tech giants in 2025, coupled with strong earnings, paint a positive picture for investors looking for growth opportunities.

Date: 12-03-2025

AI Rating: 7

Stock Splits as Investment Trigger
As indicated in the report, stock splits have increased in popularity within the technology sector and can positively affect share prices due to increased accessibility and liquidity. Historically, stocks that undergo splits tend to outperform the S&P 500 significantly, growing by 25-30% in the following year compared to the benchmark's average of 10-12%.

Meta Platforms
For Meta Platforms (NASDAQ: META), the report highlights significant growth in revenues and operating profits. In fiscal 2024, revenues increased by 22% year over year to $164.5 billion, while operating profit surged by 48% to $69.4 billion. This positions Meta strongly not just in terms of potential stock split candidacy but also suggests robust financial health.

Netflix
Netflix (NASDAQ: NFLX) showed impressive figures as well, with revenues growing 16% year over year to $39 billion and a 61% increase in net income to $8.71 billion during fiscal 2024. The operating margins also showed favorable expansion. Moreover, the report underscores Netflix's emergence in the ad-supported tier market, which rose by 30% sequentially in the last quarter of fiscal 2024, further enhancing its revenue potential.

Both companies seem on the cusp of stock splits in 2025. Given their strong financial performances and the anticipated emotional surge in investor interest due to potential splits, both Meta and Netflix's share prices could see significant upward momentum.

Stocks: META NFLX