Potential Stock Splits: 2 AI Stocks Up 160% and 190% in 2 Years to Buy Now, According to Wall Street

The article analyzes Meta Platforms (META) and CrowdStrike (CRWD), two high-growth companies that have seen substantial price appreciation, often a precursor to stock splits. Meta reported robust Q2 results with 22% revenue growth and a 38% surge in GAAP EPS, driven by advancements in AI for ad tech, and is recommended as a buy despite its 27x earnings valuation, with analysts projecting 16% upside. Conversely, CrowdStrike, which also exceeded Q2 estimates with 21% revenue growth in its AI-powered cybersecurity platform, is deemed extremely overvalued at 120x adjusted earnings, leading to a recommendation for investors to await a better entry point despite a 13% analyst upside target.

Analysis

The analysis presents a bifurcated view on two high-growth technology stocks, Meta Platforms (META) and CrowdStrike (CRWD), both of which have exhibited substantial price appreciation. Meta's recent performance is underpinned by strong Q2 results, including a 22% year-over-year revenue increase to $47.5 billion and a 38% surge in GAAP earnings per share to $7.14, complemented by a 5-percentage-point expansion in operating margin. The company's strategic push into AI to automate ad creation by 2026 is positioned as a key long-term growth driver, justifying its current valuation of 27 times earnings despite management's warning of accelerated operating expense growth in 2026. This perspective is supported by Meta's history of beating earnings estimates by an average of 16% over the last six quarters and a median analyst price target implying 16% upside. In contrast, CrowdStrike, a leader in AI-driven cybersecurity, also reported strong Q2 results with an accelerating revenue growth of 21%. However, its investment case is challenged by a valuation deemed 'extremely expensive' at 120 times adjusted earnings and a price-to-sales ratio above 26. This premium exists despite a modest 5% increase in Q2 non-GAAP net income, attributed to heavy R&D spending, and Wall Street's expectation of 19% annual earnings growth through fiscal 2027.

Key Decisions for Investors

• For Meta Platforms, the combination of dominant market positioning, strong earnings momentum with 38% EPS growth, and significant AI-driven catalysts suggests the current 27x earnings multiple may present a reasonable entry point for growth-oriented investors.
• Regarding CrowdStrike, investors should exercise significant caution due to its extremely high valuation of 120x adjusted earnings, which may already price in substantial future growth, making it prudent to await a more attractive entry point despite its strong technological leadership and 21% revenue growth.
• Investors should weigh Meta's profitable scale and relatively moderate valuation against CrowdStrike's higher-growth but significantly more expensive profile, while monitoring Meta's ability to monetize AI investments to offset guided expense increases.