Netflix is the relentless leader in streaming, and its advertising business is booming.
Broadcom, which provides infrastructure for hyperscale enterprises, is growing its backlog of artificial intelligence revenue.
ServiceNow’s cloud business is strong and its AI solutions serve major customers.
10 stocks we like better than Netflix ›
Prediction market by
A stock split is a corporate action in which a company divides its existing stock into multiple new shares, which increases the total number of shares while proportionally lowering the price per share. This can make shares more affordable and liquid for investors without changing the company’s total market capitalization or investors’ stakes.
A large number of stocks have begun to split over the past few years, and some of them are high-quality businesses that are poised to soar significantly in the coming years. If you have cash to invest in stocks right now, here are three stock split stocks you can buy and hold for the long term that look like they have huge upside potential.
Image source: Getty Images.
Netflix(NASDAQ: NFLX) A 10-for-1 stock split was implemented, effective November 17, 2025. As of this writing, shares are trading at about $94. Currently, the median 12-month price target among Wall Street analysts is about $133, which would represent an upside of about 40% from current prices. The top end of available price estimates is expected to rise 62% over the next 12 months.
Netflix is increasingly benefiting from the growth engine of its ad-supported tier, which is launching in late 2022. The company’s advertising revenue is expected to double by 2025, and its advertising currently reaches 190 million monthly active viewers. This high-margin revenue stream provides a significant new path to profitability beyond traditional subscriptions.
Netflix’s foray into live programming featuring the NFL and WWE has proven hugely successful in driving subscriber acquisition and retention and breaking ratings records. The campaigns also generated higher advertising rates, helping the company gain market share in areas where it had previously lagged. Regions such as Asia Pacific and Latin America are also experiencing faster user growth, providing a large, unsaturated potential market.
In the third quarter of 2025, Netflix saw record growth and engagement, driven by diverse content including breakthrough original movies, returning series and live major sports events. animated movies Korean Demon Hunter was the main growth driver for the quarter and became Netflix’s most-watched movie of all time with 325 million views. second season Wednesday It was the mainstay behind more than 1 billion minutes of viewing in the third quarter. black rabbit It was also the best-performing original series of the quarter, with more than 1.2 billion minutes watched.
These popular content drove revenue growth of 17% year-on-year (to $11.5 billion), and viewership share reached record highs in the United States and the United Kingdom, at 8.6% and 9.4% respectively. Content strength also drove Netflix to a record quarter for its ad business, with U.S. upfront commitments doubling from last year. Netflix continues to invest heavily in diversifying its content channels and leveraging its in-house advertising technology and data-driven recommendation algorithms to drive user engagement and loyalty. The company is in the process of acquisition Warner Bros. Discovery A massive $82.7 billion deal announced in early December 2025.
The acquisition would bring HBO, Warner Bros. Discovery’s film/TV studios and the streaming service under the Netflix umbrella, although regulatory scrutiny and industry concerns about monopoly are significant hurdles. As Netflix transforms into a mature, cash-generating business model, it remains the undisputed leader in streaming, with its scale and brand power providing a significant competitive advantage over its rivals. Long-term investors would do well to take advantage of this growth trajectory.
Broadcom(NASDAQ:AVGO) A 10-for-1 stock split was executed on July 15, 2024. As of this writing, shares are trading at around $350 per share, but some Wall Street analysts believe the stock could rise 35% over the next 12 months, and as much as 58%. Since we’re talking about stock splits, as a side note, Broadcom’s Canadian Depositary Receipts (CDRs) enacted a 6-for-1 stock split, effective for trading on November 14, 2025.
Broadcom is a leading provider of custom artificial intelligence accelerators (ASICs) and Ethernet switches for hyperscale data centers. Its clients include letterof Google, meta platformAnthropic and OpenAI. Broadcom reported record fiscal 2025 revenue of $64 billion. That’s a 24% increase from fiscal 2024 revenue of $51.6 billion.
AI semiconductor revenue in fiscal 2025 was $20 billion, a year-on-year increase of 65%, and management expects this number to double in the first quarter of fiscal 2026. Meanwhile, semiconductor solutions generated $37 billion in revenue this fiscal year, a 58% increase from the previous year. Infrastructure software revenue grew 26% year over year to $27 billion, driven primarily by the adoption of VMware Cloud Foundation.
Broadcom acquired VMware in November 2023, becoming a full-stack AI infrastructure provider and occupying an important position in the enterprise software field. This segment provides stable, high-margin recurring revenue that helps offset potential margin pressure from AI hardware.
As of fiscal 2025, the company’s backlog of artificial intelligence-related hardware orders reaches $73 billion. Profitability also rose significantly in fiscal 2025, with adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reaching $43 billion (up 35%), and Broadcom reported free cash flow of $26.9 billion.
Broadcom’s dominance in AI networking hardware, strong cash flow, high-margin software and continued AI demand are all positive indicators of the business’s current state and direction. This could be a compelling stock for long-term investors looking to capitalize on the shovel-and-spade game in artificial intelligence.
Immediate service(NYSE: NOW) A 5-for-1 stock split was executed on December 18, 2025, and the shares will trade on a split-adjusted basis beginning on that date. That means the stock is currently trading at about $155 per share. Wall Street analysts seem particularly enthusiastic about ServiceNow’s growth prospects, with the median 12-month price target 640% above the current share price. The highest 12-month share price forecast is approximately 735%.
ServiceNow is a cloud-based enterprise platform that helps enterprises automate and manage digital workflows in IT, HR, customer service, security and other departments. Essentially, the business acts as a central control tower, connecting people, processes and systems and replacing manual tasks with streamlined AI-driven processes. The company is strategically positioned to capitalize on the generative AI boom through its Now Assist suite of products.
These AI solutions are gaining traction, with the goal of reaching $1 billion in annual contract value by the end of 2026. More than 85% of Fortune 500 companies use ServiceNow’s platform. This deep integration comes with high switching costs and has a renewal rate of approximately 96% or higher.
ServiceNow customers are large enterprises and organizations in nearly every major industry, including Walmart, Amazon, Microsoft, apple, JPMorgan Chaseand the U.S. Department of Defense. ServiceNow recently made a major acquisition move, acquiring artificial intelligence company Moveworks for $2.85 billion in March 2025. The company is also reportedly close to acquiring cybersecurity company Armis for $7 billion, which would add critical device security and asset intelligence to its offerings and meet the growing need for artificial intelligence governance.
In the third quarter of 2025, ServiceNow reported subscription revenue of $3.3 billion, up 22% from a year ago. As of the third quarter of 2025, current remaining performance obligations are $11.4 billion, an increase of 21% year-over-year. ServiceNow’s adjusted earnings per share were $4.82, adjusted free cash flow was $592 million, and its profit margin was 17.5%.
Analyst downgrades and news that ServiceNow is acquiring Armis, which would be its largest ever deal, have weighed on the stock recently. Volatility in technology stocks has also generally increased recently. However, investors who believe the company will become a key player in AI workflow automation in the future may want to reconsider.
Before buying Netflix stock, consider the following factors:
this Motley Fool Stock Advisor The analytics team has just identified what they believe is 10 Best Stocks Investors can buy now…and Netflix isn’t one of them. The 10 stocks selected could generate huge returns in the coming years.
consider when Netflix This list was created on December 17, 2004… If you invested $1,000 when we recommended, You will have $504,994!* or when NVIDIA This list was created on April 15, 2005… If you invested $1,000 when we recommended, You will have $1,156,218!*
Now, it’s worth noting stock advisor The total average return is 986% — outperformed the market compared to the S&P 500’s 196%. Don’t miss the latest top 10 list, available via stock advisorand join an investment community built by individual investors for individual investors.
See 10 stocks »
*As of December 22, 2025 Stock Advisor returns
JPMorgan Chase is an advertising partner of Motley Fool Money. Rachel Warren has worked at Alphabet, Amazon and Apple. The Motley Fool has positions and recommendations at Alphabet, Amazon, Apple, JPMorgan Chase, Meta Platforms, Microsoft, Netflix, ServiceNow, Walmart, and Warner Bros. Discovery. The Motley Fool recommends Broadcom and recommends the following options: Buy $395 Microsoft calls in January 2026, and buy $405 Microsoft calls in January 2026. The Motley Fool has a disclosure policy.
Three split stocks to buy that could soar 40%, 35% and 640%, The Wall Street reports. Originally published by Motley Fool
