History Says the Nasdaq Will Surge in 2026. 2 Stock-Split Stocks to Buy Before It Does.

The Nasdaq's more-than three-year bull market looks set to continue—backed by prospects for further rate cuts, rising corporate profits and AI adoption—and historical data from Carson Group showing multi‑year bull markets typically extend much longer. A renewed wave of stock splits is amplifying momentum: Netflix completed a 10‑for‑1 split after a 26% YTD gain (862% over the decade), is seeing ad revenue accelerate (expected to double in 2025), reported Q3 revenue of $11.5bn (+17% YoY) and EPS ex‑charge +27% with Q4 revenue and EPS guidance up ~17% and 28%, respectively, trading at ~35x next‑year sales. Interactive Brokers completed a 4‑for‑1 split after a 45% YTD gain (512% over ten years), posted Q3 revenue of $1.6bn (+21% YoY) and EPS $0.59 (+40%), while customer accounts, equity and daily trades rose strongly, leaving the stock trading at about 31x TTM EPS—both stocks cited as long‑term winners supported by operational growth and management confidence.

Analysis

The Nasdaq Composite has been in a bull market for more than three years, supported by potential additional interest-rate cuts, rising corporate profits and AI-driven investor enthusiasm; Carson Group data cited five historical bull markets that lasted at least three years and showed an average duration of eight years, implying further upside may be durable. A renewed wave of stock splits is amplifying retail and momentum flows, with Bank of America data noting companies announcing splits have averaged a 25% share gain in the following year versus 12% for the S&P 500.

Netflix completed a 10-for-1 split after a 26% year-to-date gain and 862% ten-year return; Q3 revenue was $11.5 billion (+17% YoY) and EPS excluding a noncash charge rose 27%, with Q4 revenue guided to $11.96 billion (+17%) and EPS to $5.45 (+28%). Management expects ad revenue to double in 2025 and the streamer is benefiting from global content hits, but the stock trades at a premium (~35x next-year sales), reflecting high growth expectations.

Interactive Brokers also split (4-for-1) after a 45% YTD rally and 512% ten-year gain; Q3 revenue grew 21% to $1.6 billion and EPS rose 40% to $0.59, while customer accounts, equity and daily trades increased 32%, 40% and 34% respectively. Trading at about 31x trailing EPS, IBKR pairs robust operational growth and platform engagement with a comparatively moderate valuation versus high-growth peers.

Key Decisions for Investors

• Consider accumulating Interactive Brokers on strength given double‑digit revenue/EPS growth, meaningful account and trade expansion, and a reasonable ~31x TTM EPS valuation
• For Netflix, consider a selective add-or-watch stance to capture ad-revenue upside and content-driven subscriber gains, but limit position size given a premium valuation (~35x next-year sales) and dependence on ad-monetization scaling
• Monitor macro signals cited in the article—rate‑cut expectations, corporate profit trends and AI momentum—as catalysts that could extend the bull market or reverse sentiment
• Use position sizing or hedges to manage downside risk from valuation repricing despite positive operational momentum, particularly for richly priced growth names