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Netflix and another major tech giant could eye stock splits in 2025

Bank of America analyst Jared Woodard says US companies are choosing to split stocks at a pace not seen in at least a decade.

Why? Because stocks that split have a history of offering returns that far exceed the average market return over the next 12 months, according to the firm’s recent research.

That said, two names: Netflix and Meta Platforms look particularly ripe for a stock split in 2025. Here’s what each of these two has in store for investors this year.

Netflix Inc (NASDAQ: NFLX)

Shares of the streaming giant have rallied a whopping 80% in the trailing 12 months.

Netflix came in handily above Street estimates in its fourth quarter. The entertainment behemoth ended its Q4 with more than 300 million subscribers which made it confident in raising its full-year guidance on January 21.

The strength of the company’s financials already suggests NFLX could push further to the upside as we move through the remainder of 2025.

But its management could supercharge the potential gains by opting for a stock split and making Netflix shares more accessible to a broader base of investors. Of course, the fact that it currently sits at over $1,000 helps the case as well.

Despite an explosive rally in Netflix stock, Wall Street continues to see it achieving new milestones this year.

The Street-high price target of $1,494 on NFLX shares indicates potential for another 48% upside from current levels.

However, shares of this entertainment giant based out of Los Gatos, California do not currently pay a dividend and, therefore, remain unattractive for income investors in 2025.

Meta Platforms Inc (NASDAQ: META)

Another prime candidate for a stock split this year is the company behind Facebook, Instagram, and WhatsApp, according to Bank of America analyst Jared Woodard.

Meta stock is currently up some 65% versus its 52-week low – but it also has solid financials that could unlock further upside in it in the coming months.

The tech titan is currently firing on all cylinders on the back of its commitment to artificial intelligence. Just last week, Meta said it will spend as much as $65 billion this year mostly on AI infrastructure.

So, it’s reasonable to believe that Meta shares, much like NFLX, will rip higher moving forward – and Mark Zuckerberg could make the potential upside that much easier to materialize by opting for a stock split and making META more accessible for an average investor.

Analysts currently have a consensus “buy” rating on Meta stock with the Street-high price target calling for a rally to $900 or up another 28% from current prices.

Unlike Netflix stock, Meta Platforms currently pays a dividend yield of 0.28% as well.

The post Netflix and another major tech giant could eye stock splits in 2025 appeared first on Invezz

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