2 Unstoppable Stock-Split Growth Stocks That Could Soar 62% and 123% in 2026, According to Certain Wall Street Analysts

Netflix and ServiceNow — both recent stock-split companies — are presented as attractive buys based on solid Q4 results and bullish analyst targets. Netflix reported Q4 revenue of $12.0 billion (+17% YoY) and diluted EPS of $0.56 (+30%), guiding Q1 revenue/EPS of $12.15 billion and $0.76 (each +15%), trades at ~27x forward earnings, and carries a consensus target near $112 (≈34% upside) with a BMO target of $135 (≈62% upside). ServiceNow posted Q4 revenue of $3.53 billion (+21%), adjusted EPS $0.92 (+24%), RPO up 27% to $24.3 billion, trades at ~28x forward earnings, and has an average target near $200 (≈72% upside) with a top target of $260 (≈123% upside).

Analysis

Market structure: Stock splits in NFLX and NOW will mechanically expand retail participation and option flow, concentrating gamma in the front months and likely compressing effective bid-ask spreads; this benefits platform ecosystems (brokers, options market-makers) and puts upward pressure on equities when liquidity is bullish. Netflix is a direct beneficiary if it avoids an expensive WBD bidding war; a protracted auction would transfer value to WBD/target bidders and increase volatility in media. ServiceNow’s RPO (+27% to $24.3B) signals locked-in demand and pricing power in workflow automation, reinforcing SaaS secular tailwinds and shifting share toward high-RPO incumbents.

Risk assessment: Key tail risks are a hostile bidding war for WBD (driving content prices and forcing Netflix to overpay), ad-revenue miss for NFLX (ad rev not doubling as expected), and AI-induced displacement or price compression for NOW. Immediate (days) risk: bid/rumor-driven spikes; short-term (weeks–months): Q1 prints and ad-revenue cadence for NFLX and subscription churn; long-term (quarters–years): execution on monetization (ads, password policies) and AI integration into ServiceNow. Hidden dependencies include ad measurement efficacy, content amortization timelines for Netflix, and contract concentration in NOW’s RPO.

Trade implications: Direct plays favor defined-risk bullish exposure: buy 6–12 month call spreads on NFLX roughly 15–25% OTM to capture analyst-implied 34–62% upside while capping premium; for NOW, establish a 1–2% portfolio position via 9–18 month LEAP calls or call spreads to play RPO-driven growth. Pair trade: long NOW (1–2%) vs short TEAM (1%) to express workflow automation outperformance over collaboration tools; neutralize beta by sizing. Expect elevated option IV into M&A/earnings — prefer spreads to limit theta/IV decay.

Contrarian angles: Consensus buys may underprice M&A friction — the market is not fully accounting for a multi-bidder WBD auction that could force NFLX to walk or overpay; downside from a failed/ad-monetization miss is underappreciated. Conversely, NOW’s 48% YTD drawdown may be overdone given 28x forward EPS and 27% RPO growth — risk/reward skews favor accumulation over 12 months. Historical parallel: splits in 1990s tech often signaled continued momentum but selection bias exists; retail-driven squeezes can reverse quickly if fundamentals slip, so favor staged entries and volatility-defined hedges.

Key Decisions for Investors

• Establish a 2–3% long position in NFLX using 3–6 month call spreads ~15–25% OTM (max loss = premium) to target 34–60% upside; place a hard stop-loss strategy: buy 1–2x 3-month puts if stock drops 20% from entry or if WBD auction escalates within 30 days.
• Initiate a 1.5–2% position in NOW via 9–18 month LEAP call or call spread (20% OTM) to capture structural RPO-driven upside; take profits at +50% and trim to neutral if RPO growth slows below 15% YoY on a quarterly basis.
• Execute a pair trade: long NOW (1–2%) vs short TEAM (1%) to express workflow automation outperformance; rebalance monthly and unwind the short if TEAM’s ARR growth >15% YoY or if NOW’s RPO growth falls below 10%.
• Avoid directional exposure to WBD; if hostile bidding intensifies, consider a tactical short of WBD sized <=1% as event-driven play, and reduce NFLX exposure by 50% if Netflix publicly enters binding bids or if WBD accepts a >20% premium bid within 60 days.
• Manage portfolio-level risk: increase cash/hedge allocation by 1–2% for next 30–90 days to prepare for elevated macro or M&A volatility; prefer defined-risk option structures (spreads) rather than naked directional bets into upcoming earnings and auction catalysts.