3 Stock-Split Stocks to Buy that Could Soar As Much as 40%, 35%, and 640%, According to Wall Street

Netflix (10-for-1 split effective Nov. 17, 2025) is trading near $94 with a median 12-month analyst target of $133, reporting Q3 strength driven by its ad-supported tier (190M monthly ad viewers) and 17% YoY revenue growth to $11.5 billion; it is pursuing an $82.7 billion acquisition of Warner Bros. Discovery that faces regulatory scrutiny. Broadcom (10-for-1 split in July 2024; CDR 6-for-1 Nov. 14, 2025) reported FY2025 revenue of $64 billion (+24%), AI semiconductor revenue of $20 billion (+65%), a $73 billion AI hardware backlog, adjusted EBITDA of $43 billion and free cash flow of $26.9 billion. ServiceNow (5-for-1 split Dec. 18, 2025) trades around $155, with Q3 subscription revenue of $3.3 billion (+22%), RPO of $11.4 billion (+21%), adjusted EPS $4.82 and adjusted FCF $592 million; its Now Assist AI suite targets $1 billion ACV by end-2026 and the company is active on M&A (Moveworks $2.85B, possible $7B Armis deal).

Analysis

Market structure: Winners are AI infrastructure and enterprise workflow plays — Broadcom (AVGO) and ServiceNow (NOW) gain pricing power from hyperscaler capex and sticky SaaS contracts, while Netflix (NFLX) benefits from ad-monetization scale (190M MAUs) and live sports. Losers: smaller streaming pure-plays and niche AI chipmakers facing capacity and price pressure. Supply/demand: Broadcom's $73B AI hardware backlog signals demand >> near-term supply for high-end ASICs and switches, supporting multiyear pricing power and capex cycles. Cross-asset: stronger tech cashflows pressure sovereign bonds (incremental risk-on -> higher yields), lift USD (hurting EM subscriber ARPU), and compress energy/metal risk premia through datacenter power demand.

Risk assessment: Key tail risks are regulatory (Netflix–WBD $82.7B tie-up — ~30–50% block/mitigation chance over 6–18 months), concentration (Broadcom sales tied to a handful of hyperscalers — >50% demand risk), and M&A integration for NOW (Armis ~$7B). Time horizons matter: days–weeks see split-driven liquidity and IV moves; months hinge on quarterly ad revenue/AI backlog updates; 12–36 months reflect regulatory outcomes and enterprise AI adoption. Hidden dependencies: Netflix ad growth depends on U.S. upfront ad cycles and macro ad spend; Broadcom margins depend on VMware software upsell and hyperscaler share retention. Catalysts: quarterly earnings (next 1–3 reports), regulator filings (DOJ/FTC within 90–180 days), and hyperscaler capex guides.

Trade implications: Direct long: establish a 2–3% portfolio long in AVGO as a 12‑18 month pick‑and‑shovel AI play, implemented via a cost-controlled call spread (buy 12–18 month ATM calls, sell +15–20% OTM). Buy 1–2% position in NOW on dips below $150 with 18‑month horizon and 20% trailing stop; consider buying 9–12 month call LEAP. NFLX: opportunistic 2% long below $100 (target $133 in 12 months per street); hedge with a 3‑month put if DOJ files or buy a cheap protective put spread (10–15% OTM). Reduce exposure to ad‑sensitive media names by ~25% vs. benchmark in the next 3 months.

Contrarian angles: Consensus overstates NOW’s upside (640% target is unrealistic) and understates integration and execution risk — valuation could re-rate if ACV growth slows. Conversely, the market may underprice Netflix+WBD synergy in advertising and live sports monetization; if regulators greenlight with divestitures, upside could be +40–60% quickly. Historical parallels: large media merger reviews (Comcast/NBCU) produced prolonged uncertainty and 20–40% volatility; expect similar multi‑quarter windows and trading opportunities. Unintended consequence: consolidation raises ad concentration, which could trigger advertiser pushback and short‑term CPM declines — monitor advertiser renewal rates and upfront sell‑through weekly.

Key Decisions for Investors

• Establish a 2–3% long position in Broadcom (AVGO) as a 12–18 month core AI‑infrastructure hold; implement via a debit call spread (buy 12–18 month ATM calls, sell +15–20% OTM) to target ~30% upside while capping premium outlay.
• Buy a 1–2% tactical position in ServiceNow (NOW) on pullbacks under $150; set a 20% trailing stop and add if subscription RPO growth stays >20% on the next two quarters; consider 18‑month calls if conviction is high.
• Initiate a 2% opportunistic long in Netflix (NFLX) only below $100 with a 12‑month target of $133; purchase a 3‑month 10–15% OTM put or put spread as contingent protection if DOJ/FTC files suit within 90 days.
• Trim ad‑exposed media and pure‑play streaming exposure by ~25% vs. benchmark over the next 3 months; redeploy proceeds into AVGO/NOW. Additionally, buy 6–9 month put spreads on Warner Bros. Discovery (WBD) as asymmetric insurance against a blocked merger (cost‑controlled downside protection).