2 Unstoppable Stock-Split Growth Stocks That Could Soar 48% and 80% in 2026, According to Certain Wall Street Analysts

Netflix and ServiceNow—both recent stock-split companies—are presented as buy candidates based on strong recent results, analyst optimism and material upside to consensus targets. Netflix reported Q3 revenue of $11.5 billion (+17% YoY) and diluted EPS up 27% (ex one-time tax), guided Q4 revenue +17% to $11.96 billion and EPS $5.45, trades at ~28x forward earnings, and carries a Wall Street average target near $126 (39% upside) with Jefferies’ $134 target implying 48% upside. ServiceNow reported Q3 revenue of $3.4 billion (+22% YoY), adjusted EPS $4.86 (+29%), a backlog/RPO of $24.3 billion (+24%) with $11.35 billion in current RPO, and consensus and Morgan Stanley split-adjusted targets implying ~53% and 80% upside respectively despite a 2025 pullback. Historical data cited (Bank of America) and high analyst buy-rates underpin the article's bullish case for both stocks.

Analysis

Market structure: Stock splits for NFLX and NOW signal retail demand elasticity and create a larger float of small-lot holders, likely increasing intraday volatility and order flow. Netflix’s proposed WBD acquisition (and Paramount noise) concentrates deal risk that can reprice media comps quickly; ServiceNow’s large RPO ($24.3B backlog, RPO $11.35B) implies underwritten revenue for the next four quarters and reinforces pricing power in enterprise workflow automation.

Risk assessment: Immediate risk (days–weeks) is binary M&A headlines around WBD that can move NFLX ±20% intraday; short-term risk (months) is execution — password crackdown and ad tier monetization sustainability for NFLX, and RPO conversion rates for NOW. Tail risks include a bidding war driving content spend above free cash flow (NFLX) or AI platform commoditization reducing SaaS pricing power (NOW); trigger thresholds: NFLX forward P/E >35x or NOW RPO YoY growth <10% would alter thesis.

Trade implications: Favor structured, skewed-long exposure: take option-backed exposure to NFLX to capture 39–48% analyst upside while capping downside; size NOW as a core long within software allocation given 22% revenue growth and 24% RPO uplift but hedge sector risk. Cross-asset: expect higher implied vols on NFLX/NOW options, potential modest tightening in IG credit spreads if tech capex remains healthy, and increased USD demand on risk-off headlines.

Contrarian angles: Consensus underweights execution risk post-acquisition for NFLX and overestimates perpetual RPO-to-revenue conversion for NOW; the stock-split pop is often front-loaded — if content costs or churn worsen, both names can give back gains. Historical parallel: late-90s split-driven retail rallies faded when fundamentals missed; prepare for mean reversion if growth misses by >200–300 bps versus guidance.

Key Decisions for Investors

• Consider establishing a 2–3% portfolio exposure to NFLX via a 3–6 month call spread (bull call spread) sized to target ~40% upside; place a hard stop to reduce to zero if (a) the WBD deal is clearly lost within 30 days or (b) NFLX forward P/E expands above 35x.
• Initiate a 1.5–2% long position in NOW equity for a 12-month horizon targeting $223–$263 (53–80% upside per street); hedge 25–50% of sector exposure by shorting software ETF IGV at half notional (long NOW : short IGV = 1 : 0.5).
• Use covered-call overlays on newly acquired NOW shares (sell 30–60 day calls at +15–25% strike) to fund cost of the trade; roll if RPO growth remains >20% YoY, unwind if RPO decelerates below 10%.
• If seeking volatility plays, buy NFLX 3–6 month out-of-the-money call spreads sized ≤1% portfolio as a directional hedge; if implied vol spikes >40% on M&A headlines, trim long equity exposure and harvest premium by selling 30–45 day strangles against part of the float.