12 Stocks That Could Split in the Near Future

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1. Netflix Inc. (NASDAQ:NFLX)

Share Price as of January 19: $858.10

Surge in Share Price in 5 Years: 152.63%

Stock Split Confirmed: No

Number of Hedge Fund Holders: 121

Netflix Inc. (NASDAQ:NFLX) is an entertainment company that streams TV shows, movies, documentaries, and games in several genres and languages on internet-connected devices. It has invested billions in original content and secured deals with major stars to enhance its streaming library.

In the third quarter of 2024, the company experienced strong subscriber revenue growth, due to an expanding member base and high engagement levels. This growth is expected to continue into 2025, with Netflix Inc. (NASDAQ:NFLX) projecting $43 billion to $44 billion in revenue, which reflects a 15% year-over-year increase. Most of this growth will come from solid net subscriber additions, supported by the company’s 2025 content slate, which includes new seasons of Stranger Things and Squid Games.

With millions of untapped households, Netflix Inc. (NASDAQ:NFLX) expects continued membership growth, further supported by price increases and strong content. Additionally, the Average Revenue Per Member (ARM) will rise, and while the ad-supported plan isn’t a primary driver of growth for the company yet, its revenue is expected to double in 2025.

On January 15, BMO Capital Markets raised its price target to $1,000, due to growth prospects driven by its ad-supported video-on-demand (AVOD) platform, which has seen significant user growth, now reaching 70 million monthly active users. The firm expects this to grow to 90 million by 2025, with increasing ad frequency and stronger engagement from content like WWE.

While we acknowledge the growth potential of Netflix Inc. (NASDAQ:NFLX), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NFLX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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