With Netflix's 10-for-1 Stock Split Complete, Here Are 3 Growth Stocks to Buy in December That Could Issue Stock Splits in 2026

Netflix completed a 10-for-1 stock split, lowering its per-share price to roughly $100 without changing market capitalization, and the article argues that similar splits could boost investor accessibility and index inclusion for large growth names. The author forecasts a 5-for-1 split for Meta (citing strong cash flow, buybacks/dividend capacity and potential Dow inclusion), a 10-for-1 for ASML (driven by EUV/high-NA monopoly and AI-driven chip demand with shares >$1,100), and a 5-for-1 for Eli Lilly (after a >600% five-year run, near-$1T market cap, driven by GLP-1 drugs), noting analyst EPS estimates for Lilly of $23.69 in 2025 and $32.18 in 2026 (+35.8%).

Analysis

Market structure: Stock-split signaling (NFLX precedent) favors large-cap growth names with strong retail and options demand—META, ASML, and LLY stand to see increased retail flows, tighter bid-asks and higher option gamma. ASML benefits structurally from oligopoly pricing power in EUV lithography; LLY benefits from GLP-1 revenue momentum that supports earnings-per-share growth of ~36% YoY (2025–26 consensus). Splits themselves do not change market cap but raise short-term demand elasticity and lower per-share entry barriers, increasing call open interest and retail-driven intraday volatility.

Risk assessment: Tail risks are concrete—regulatory/pricing scrutiny for LLY (FDA/antitrust/state actions) and antitrust/advertising regulation for META within 6–18 months, and geopolitical/export controls for ASML (China exposure) that could cut 10–30% off expected revenue if orders constrained. Immediate (days–weeks): split-driven flows and gamma squeeze; short-term (1–6 months): earnings/clinical readouts and ad cycles; long-term (2–5 years): underlying secular demand for AI chips and GLP-1 adoption. Hidden dependency: potential Dow inclusion for META/LLY triggers passive flows equal to ~0.2–0.5% of market cap in transition windows.

Trade implications: Favor overweight semiconductors/AI hardware (ASML, TSM) and selective growth (META) while trimming telecom/legacy dividend names (VZ) that could be displaced. Use defined-risk option structures: buy LEAPS or two-way call spreads on ASML (target +15–25% over 12 months) and buy LLY on pullbacks below $600 or via 12–18 month call spreads to cap downside. Pair trades: long LLY vs short MRK or long META vs short VZ capture rotation into growth and potential index reweighting.

Contrarian angles: Consensus assumes splits equal durable multiple expansion—history shows split-driven outperformance often fades after 3–6 months absent earnings beat; ASML is priced for perfection on EUV adoption and could underperform if TSMC/Intel capex slows 10–20%. LLY GLP-1 demand could decelerate if reimbursement or competitive pricing intensifies—this is a 6–18 month asymmetric tail. Unintended consequence: higher float and options gamma can amplify sell-offs into earnings, creating tactical 8–15% drawdown windows to buy from.

Key Decisions for Investors

• Establish a 1.5% portfolio long position in ASML (ASML) via shares or staggered 2026 Jan LEAPS with a bullish call spread if price drops ≥5% from ATH; target +20% in 6–12 months, stop-loss -12% (hard close) to limit semiconductor cycle risk.
• Accumulate Eli Lilly (LLY) to 1–2% portfolio weight on weakness: buy shares on pullback to <$600 or implement a 12–18 month 1×2 call spread to express GLP-1 upside with max risk capped; set a monitoring trigger to reduce exposure if quarterly U.S. prescription growth <20% YoY or FDA/legislative headlines within 90 days.
• Initiate a 1% core long position in Meta (META) via shares or a 3–6 month call diagonal; add incrementally if ad-revenue prints beat by +2 percentage points or if price falls >10%. Hedge with a 0.5% short position in Verizon (VZ) to capture potential index rebalancing and rotation effects.
• Sell cash-secured puts on LLY or ASML at ~8–12% OTM with 60–90 day expiry to monetize elevated implied volatility (target premium 1.5–3% of notional) and be willing to take assignment to build core positions at discounted cost basis.