Stock Market Boom: 3 Tech Giants Poised for a Stock Split
The stock market has been on fire this year, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Index surging 21.9%, 22.2%, and 13.7%, respectively. As a result, several tech stocks are ripe for a stock split, and we’ve identified three giants that could be next in line.
Netflix: A Streaming Powerhouse
With its share price hovering above $700, Netflix (NASDAQ: NFLX) is an obvious candidate for a stock split. The company last split its shares in 2015, and with its stock trading near its all-time high, another split could be imminent. But even if Netflix passes on a stock split, investors should still consider adding shares to their portfolios. The company has demonstrated remarkable resilience against stiff competition, growing its revenue by 22% over the past three years. Its operating margin now stands at an impressive 24%, thanks to savvy policy decisions like cracking down on password sharing and introducing an ad-supported tier.
Spotify: A Hot Stock with Room to Grow
Spotify Technology (NYSE: SPOT) has never split its stock since its IPO in 2018, but that could change soon. With its shares nearly doubling year-to-date to over $360, the company’s newfound profitability makes a stock split increasingly likely. CEO Daniel Ek’s efforts to reduce costs have paid off, with Spotify’s operating margin increasing substantially from -6.9% to 2.7%. Whether or not a stock split is announced, Spotify remains an attractive investment opportunity.
Meta Platforms: A Digital Ad Giant
Meta Platforms (NASDAQ: META) has been one of 2024’s top performers, with its shares soaring 68% to nearly $600. While it’s unclear if Meta will split its shares, the company’s incredible growth and profitability make it an attractive addition to any portfolio. In the second quarter, Meta’s revenue surged 22%, while net income jumped 73%. Its massive scale in the digital ad market makes it a compelling investment opportunity, regardless of whether a stock split is on the horizon.
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