History Says the Nasdaq Will Surge in 2026. 1 Stock-Split Stock to Buy Before It Does.

Netflix is demonstrating robust financial performance and growth prospects, with its stock up 48% over the past year and an upcoming 10-for-1 split. The streaming leader reported a 17% revenue increase to $11.5 billion in Q3, with expanding operating margins and strong Q4 guidance, despite a one-time tax charge. Driven by its extensive content library, global expansion, and successful ad-supported tier, Netflix has set ambitious 2030 targets, including doubling revenue to $78 billion and achieving a $1 trillion market cap, which analysts believe justifies its current premium valuation and positions it for continued success into 2026.

Analysis

Netflix (NFLX) demonstrated robust financial performance in Q3, with revenue increasing 17% to $11.5 billion and EPS rising 9% to $5.87, which would have been a 27% increase excluding a one-time $619 million Brazilian tax charge. Management projects continued strong growth, guiding for Q4 revenue of $11.96 billion (up 17%) and EPS up 28% to $5.45, while analysts forecast 2025 revenue growth of 15% to $45 billion and EPS climbing 28% to $25.30.

The company's strategic initiatives, including an expanding content library, global reach, and the successful ad-supported tier, underpin ambitious 2030 targets such as doubling revenue to $78 billion, achieving $9 billion in ad revenue, and reaching a $1 trillion market cap. This strong operational trajectory, coupled with an expanding operating margin expected to exceed 29.3% in 2025, positions Netflix favorably against competitors who have scaled back streaming ambitions.

Netflix's upcoming 10-for-1 stock split signals management's confidence and aims to increase accessibility, further supported by its industry-leading position and growing global audience. While trading at 34 times next year's expected earnings, this premium valuation is justified by its sustained growth and profitability, aligning with the broader Nasdaq's historical bull market trends, which suggest continued momentum into 2026.

Key Decisions for Investors

• Investors should consider Netflix's strong financial guidance and ambitious long-term growth targets, particularly in subscriber expansion and ad revenue, as key drivers for potential continued outperformance.
• The upcoming stock split and expanding operating margins reinforce management's confidence and the company's profitability trajectory, justifying its premium valuation within the current bullish tech market.
• Monitor competitive dynamics and the execution of global expansion and content strategy, as these remain critical for achieving the projected 2030 milestones and sustaining market leadership.