Stock splits have been gaining popularity in recent times, with several high-profile companies opting for splits in the past year. These splits can make it easier for smaller investors to buy shares and potentially boost stock performance. However, as always, there are no guarantees of success. Here, we will explore three companies that could be next in line for a stock split.
Meta Platforms: A Strong Player in AI
Meta Platforms has emerged as a dominant force in the AI field, boasting an impressive 3.2 billion daily users across its platforms. This represents a year-over-year increase of 7%, solidifying the company’s position in the market. The most recent quarterly earnings report from Meta showed a significant improvement in the company’s financials, with EPS more than doubling compared to the previous year.
Key Financial Metrics for Meta Platforms:
- EPS Growth: +121% YoY (Q2 2023)
- Revenue Increase: +29.6% YoY (Q2 2023)
- Operating Margin Improvement: Significant improvement in Q2 2023
Meta’s recent decision to cut 10% of its staff has contributed to an 83% rise in its share price, now hovering above $500. This significant increase in value makes a stock split a prime consideration for the company.
Super Micro Computer: A Prime Candidate for a Split
Super Micro Computer (Supermicro) has seen impressive gains this year, rivaling even Nvidia’s recent performance. The company designs and manufactures hardware critical for AI applications, making it a key player in the industry. Supermicro’s revenue stream is diversified, with the company benefiting from sales of data center servers that utilize Nvidia’s chips.
Key Financial Metrics for Super Micro Computer:
- EPS Growth: +100% YoY (Estimated Q3 2023)
- Revenue Increase: Significant growth in Q2 2023
- Share Price: Currently trading near $900
Supermicro’s expected EPS growth of over 100% from last year makes its shares poised for a potential split.
Netflix: A Leader in Streaming Services with AI Integration
While primarily known for its streaming services, Netflix employs AI and machine learning to enhance user recommendations. With an impressive 260 million subscribers worldwide, Netflix leads the streaming market. The company’s financials show an estimated EPS growth of roughly 40% year over year.
Key Financial Metrics for Netflix:
- EPS Growth: +40% YoY (Estimated Q3 2023)
- Revenue Increase: Significant growth in Q2 2023
- Share Price: Currently trading near $700
A stock split could make Netflix’s shares more accessible to a broader range of investors.
Important Note:
Always consult with your financial advisor before making any stock moves. This article is not intended as financial advice, and readers are advised to conduct their own research and analysis before investing in any company.
