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2 Stock-Split Stocks to Buy Before They Soar 95% and 103%, According to Wall Street Analysts

newsfeedback@fool.com (Trevor Jennewine)
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⚡ Quantum Brief
Netflix and ServiceNow completed 10-for-1 and 5-for-1 stock splits in late 2025, respectively, yet their shares remain 43% and 56% below record highs amid market concerns. Analysts project significant upside: Baird’s $150 Netflix target implies 95% growth, while Morgan Stanley’s $210 ServiceNow target suggests 103% potential, far exceeding median estimates. Netflix’s $83B Warner Bros. Discovery bid—adding DC, Game of Thrones, and Harry Potter—sparked a 43% drop, though analysts argue long-term content synergies justify the debt risk. ServiceNow’s enterprise software dominance (85% of Fortune 500 clients) and AI integration offset disruption fears, with 20% revenue growth and 26% earnings gains reported in Q4 2025. Both stocks trade at ~30x earnings, aligning with projected 19-22% annual earnings growth, making current valuations attractive for long-term investors despite near-term volatility.
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By Trevor Jennewine – Feb 25, 2026 at 4:12AM ESTKey PointsNetflix completed a 10-for-1 stock split in November, and ServiceNow completed a 5-for-1 stock split in December.Netflix stock is down 43% because the company plans to buy Warner Bros. Discovery's streaming and studio assets, but shares look quite attractive at the current price.ServiceNow stock is down 56% due in part to concerns that AI will disrupt the software industry, but the company's IT products are deeply entrenched across large enterprises.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: NFLXNetflixMarket Cap$329BToday's Changeangle-down(2.72%) $2.07Current Price$78.09Price as of February 24, 2026 at 3:59 PM ETNetflix and ServiceNow recently completed stock splits, and both companies' shares look attractive at current prices.Netflix (NFLX +2.72%) completed a 10-for-1 stock split in November. Shares are currently 43% below the record high. ServiceNow (NOW +1.65%) completed a 5-for-1 stock split in December. Shares are currently 56% below the record high.

Most Wall Street analysts think the stocks are undervalued, and certain analysts expect substantial gains. Vikram Kesavabhotla at Baird values Netflix at $150 per share, implying 95% upside from its current share price of $77. And among 49 analysts who follow the company, the median target price of $111 per share implies 44% upside. Keith Weiss at Morgan Stanley values ServiceNow at $210 per share, implying 103% upside from the current share price of $103. And among 47 analysts who follow the company, the median target price of $180 per share implies 75% upside. Investors gravitate toward forward stock splits because they take place after substantial and sustained share price appreciation, which is often a signal of a quality company. Here are the important details about Netflix and ServiceNow. Image source: Getty Images. Netflix: 95% upside implied by Baird's target price Netflix is the leading streaming service no matter how you measure popularity: It has more subscribers, more monthly active users, and accounts for a larger percentage of television viewing time (excluding Alphabet's YouTube) than any competitor. That puts the company in a good position because the streaming video market is forecast to grow at 22% annually through 2030, according to Grand View Research. Netflix has differentiated itself with original content. With more users and viewing time than its competitors, the company has more data to feed machine learning models that inform content development decisions. Consequently, Netflix originals regularly top the charts. In fact, the company made seven of the 10 most popular original streaming series in 2025. Netflix has made an all-cash bid to buy Warner Bros. Discovery's streaming and studio business for $83 billion when debt is included. The market has punished the stock since the announcement because Netflix would take on a substantial amount of debt to finance the deal, which would reduce cash flow available to fund original content creation. However, Netflix would also gain rights to franchises like the DC Universe, Game of Thrones, and Harry Potter. The company could use that intellectual property to develop original content that drives growth for decades, according to co-CEO Greg Peters. While the transaction undoubtedly carries risk, I think those risks have been discounted. Wall Street expects Netflix's earnings to increase at 22% annually over the next three years, which matches Grand View Research's estimate for the broader streaming video industry. That seems reasonable, and it makes the current valuation of 30 times earnings look quite attractive. I doubt Netflix will return 95% in the next year, but the current price is a solid buying opportunity for patient investors. ExpandNASDAQ: NFLXNetflixToday's Change(2.72%) $2.07Current Price$78.09Key Data PointsMarket Cap$329BDay's Range$75.21 - $78.1152wk Range$75.01 - $134.12Volume1.4MAvg Vol46MGross Margin48.59% ServiceNow: 103% upside implied by Morgan Stanley's target price ServiceNow serves as an enterprise control tower. Its platform integrates and automates workflows across disparate departments, including information technology (IT), finance, human resources, sales, and customer service. Consultancy Gartner recently recognized the company as a leader in business orchestration and automation technologies. ServiceNow is particularly dominant in IT software, where its applications assist businesses in optimizing infrastructure costs and performance. The company has added generative AI capabilities to its software that summarize content, surface insights, and build workflows. Gartner recently recognized the company as leader in artificial intelligence applications for IT Service Management. ServiceNow reported solid fourth-quarter financial results. Revenue rose 20% to $3.5 billion and non-GAAP (adjusted) net income increased 26% to $0.92 per diluted share. Management guided for slightly faster sales growth in the first quarter. CEO Bill McDermott commented, "There is no AI company in the enterprise better positioned for sustainable, profitable revenue growth." ServiceNow stock is down 56% from its high, partly because investors are worried AI code generation tools will disrupt the software industry.

But Wall Street expects the company's adjusted earnings to increase 19% in 2026. That makes the current valuation of 29 times earnings look attractive. I doubt ServiceNow will return 103% in the next year, but investors should still consider buying a small position. More than 85% of Fortune 500 companies use ServiceNow, which makes widespread AI-driven displacement unlikely.Read NextFeb 25, 2026 •By Danny Vena, CPANetflix's Ad Revenue Surges to $1.5 Billion: Is This the Best Stock to Buy Today With $1,000?Feb 24, 2026 •By Bram BerkowitzBillionaire Investor Philippe Laffont's Hedge Fund Sold Its Entire Stake in The Trade Desk and Increased Its Position in This Streaming Giant by 17xFeb 23, 2026 •By Rich SmithWhy Netflix Stock Just DroppedFeb 22, 2026 •By Trevor Jennewine1 Stock-Split Stock to Buy Before It Soars 90%, According to a Wall Street AnalystFeb 22, 2026 •By Danny Vena, CPA3 Stock-Split Stocks to Buy Before They Soar Between 73% and 149% According to Select Wall Street AnalystsFeb 19, 2026 •By Robert IzquierdoIs Netflix Stock a Buy, Sell, or Hold in 2026?About the AuthorTrevor Jennewine is a contributing Motley Fool stock market analyst covering technology, cryptocurrency, and investment planning. Prior to The Motley Fool, Trevor managed several pharmacies. He holds a doctor of pharmacy degree from Oregon State University, a master’s degree in business administration from Miami University, and a bachelor’s degree in biology from Miami University.TMFphoenix12X@tjennewine1Stocks MentionedNetflixNASDAQ: NFLX$78.09 (+2.72%) $+2.07AlphabetNASDAQ: GOOGL$310.96 (0.17%) $0.53Morgan StanleyNYSE: MS$168.73 (+1.16%) $+1.93ServiceNowNYSE: NOW$102.46 (+1.65%) $+1.66GartnerNYSE: IT$147.34 (+1.64%) $+2.37AlphabetNASDAQ: GOOG$310.92 (0.25%) $0.77Warner Bros. DiscoveryNASDAQ: WBD$29.16 (+0.81%) $+0.23*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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