
"Stock splits don't change a company's intrinsic value, but they generate a lot of attention among investors. More importantly, stock splits make options more accessible, which can lead to higher volatility. Netflix ( NASDAQ:NFLX), ServiceNow ( NYSE:NOW), and Interactive Brokers ( NASDAQ:IBKR) are three of the most notable stock splits that took place this year. Netflix has achieved moderate returns this year that have trailed the S&P 500, while ServiceNow didn't produce the best year for investors."
"Meanwhile, Interactive Brokers has proceeded to outperform the stock market. Stock splits are largely driven by price and can generate a short-term boost in a company's stock price. While 2025 featured several big-name splits, these companies look poised to announce stock splits in 2026. Costco (COST) Costco ( NASDAQ:COST) traded at above $1,000 per share earlier this year, and while this year hasn't been the best for the stock, it's still up by roughly 130% over the past five years."
"The global wholesaler's membership model offers recurring revenue and incentivizes people to visit their locations for everyday purchases. Costco customers continue to return in droves based on the company's 6.4% year-over-year comparable sales growth in Q1 FY26. Overall revenue and net income inched higher year-over-year, and as Costco continues to grow, its stock price should rise above $1,000 again. That high price makes Costco prime for a stock split, and a stock split would still make sense at current levels."
Stock splits do not change a company's intrinsic value but attract investor attention and make options more accessible, which can increase volatility. Notable 2025 splits included Netflix, ServiceNow, and Interactive Brokers, with varied stock performance. Splits are largely price-driven and can provide short-term stock boosts. Several large companies look poised to announce splits in 2026. Costco traded above $1,000 per share and remains up about 130% over five years, supported by membership-driven recurring revenue and 6.4% comparable sales growth in Q1 FY26. A lower share price from a split could increase trading volume and investor interest.
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