Netflix (NASDAQ: NFLX), Costco (NASDAQ: COST), and Meta Platforms (NASDAQ: META) are the stocks most likely to split in 2025 because of growth, increasing shareholder value, and rising stock prices. Up an average of 500% over the past three years, these stocks are on track to continue growing, which is a problem, sort of.
The problem is accessibility. Average investors, specifically a company’s own employers who benefit from stock purchase programs, can’t feasibly invest in thousand-dollar stocks regularly. A stock split brings the per-share value back into a reasonable range, thereby making it more accessible to a broader range of investors.
That’s good for all investors as it increases ownership, reduces volatility, and helps sustain uptrends. Uptrends are another critical factor; split stocks are well-known to outperform the broad market, and these stocks have catalysts to keep their shares trending higher.
Netflix Matures Into Capital Returning Machine: Shares Top $1,000
There are many facets to Netflix’s bull-case thesis, including outperformance, wider margin, robust cash flow, investment quality debt ratings, and the balance sheet. The takeaway for investors is that business trends are expected to remain robust in 2025 and potentially accelerate in 2026, sustaining the cash flow trends.
Revenue and earnings growth may accelerate in 2026 because of the ad business, which is growing quickly and is expected to reach critical mass soon. When that happens, the company can court significant, globally-positioned advertisers and make real money via this channel.
The cash flow is a significant factor in Netflix’s stock price rise. The cash flow allowed it to reduce debt, build cash, and achieve investment-quality debt ratings. The cash flow also allows for significant share buybacks, which reduced the count by 1.5% in 2024.
Regarding the stock price, it crossed above the $1000 level following the Q4 2024 earnings release and is on track to hit $1100 or higher based on technical readings. That aligns with the analysts' sentiment trends, which indicate that a move into the $1100 to $1200 region is possible this year. At that level, Netflix could split by as much as 10-for-1.
Costco Builds Cash: Investors Patiently Wait for Special Dividend
Details from Costco’s calendar 2024 include market share gains, industry-leading growth, and an increasingly large cash position. The cash position is significant because cash flow is sufficient to keep it growing, increasing the odds the company will pay another special dividend soon.
The last was in late 2023, and based on the business and payout trends, the next could happen by the end of this year or early in 2026. Anticipation for the special dividend, along with business growth, the dividend, and increasing shareholder value, have the stock price above $1,000 where a split is near-certainty. At this level, the company could split by 10-for-1.
Meta Platforms' Stock Rally Gains Momentum in 2025
Meta Platforms' stock price rally gained momentum in Q1 2205 due to the strength shown in 2024 and the outlook for continued strength this year and next. Strength is due to the compounding impact of AI, including operational and business efficiencies. Takeaways from the Q4 report include increased user counts, ad engagement, and revenue per ad, which provide leverage to the top and bottom lines.
The outlook for 2025 includes increased AI spending, but this is no problem because the spending has so far had positive results.
Meta Platforms’ stock price is still shy of the $1000 mark but heading there quickly. The analysts' response to the Q4 results and 2025 guidance includes numerous price target revisions that lifted the consensus estimate 10% within days and point to significantly higher prices. The high-end range is near $875 in early February, likely to trend higher as the year progresses.
