It's always hard to predict the next major stock split on Wall Street, but investors can consider several factors to make an educated guess.
First, the higher a corporation's stock price, the more likely it is a split is forthcoming, all else being equal. Second, businesses with attractive growth prospects might expect significant capital appreciation, which may justify a stock split, especially when the company's share price is already high. Third, a history of previous stock splits shows a company's willingness to resort to this move.
With all that in mind, my prediction for the most prominent stock split of 2026 is none other than Netflix (NFLX 0.09%).
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Why Netflix is a strong candidate
Stock splits occur fairly often on equity markets. But to qualify as prominent, the company behind it must be notable -- and the bigger, the better.
Several stocks that are more expensive than Netflix's recent $1,112 are relatively smaller corporations. They may be just as likely as Netflix to resort to a stock split next year, based on their share prices alone, but even if they did, they would attract far less attention.
Take, for instance, White Mountains Insurance Group, a reliable insurance-focused holding company with a stock price of about $1,917 and a market cap of $4.9 billion -- compared to Netflix's $464 billion. The insurance group, though well regarded in its niche, lacks the size and presence of Netflix.
There are also corporations with expensive stock prices and the fame that often comes with it, but some of those seem unlikely to conduct stock splits. The best example here may be Berkshire Hathaway, whose Class A shares were recently trading at an eye-popping $783,500. The Buffett-led conglomerate introduced Class B shares partly to make the stock more accessible to average investors.
Berkshire Hathaway did conduct a 50-for-1 stock split of its Class B back in 2010, but shares are currently worth $492, so there probably isn't another one on the way. Class A has never split, and investors shouldn't hold their breath for that.
There is also MercadoLibre, whose stock price is $2,110 but has never had a stock split. AutoZone could be another great candidate: a prominent company with a share price of about $4,000 that has split its stock before. However, it hasn't done so for about 31 years despite the stock price rising light-years above its levels during the last stock split.
How does Netflix compare? Its stock price is pretty high. It is a prominent company worth nearly half a trillion dollars. And it has conducted two stock splits: in 2004 and 11 years later in 2015 (next year will be 11 years since the last stock split). The share price is higher than it was during the last one.
Thus, Netflix seems a strong candidate to be the next prominent stock split on Wall Street.
NASDAQ: NFLX
Key Data Points
Can Netflix bounce back from a recent dip?
Investors can also look at the last factor: growth prospects. If Netflix's shares are set to rise considerably from their current levels, management may be even more likely to resort to a stock split.
Some might say that's not the case, given the company's recent post-earnings dip. However, that wasn't due to any change in the company's outlook. Netflix's results were strong. Revenue increased $17.2% year over year to $11.5 billion. The market, though, zoomed in on the bottom line. Netflix's earnings per share climbed by just 8.7% year over year to $5.87.
The company was hit with a $619 million tax bill due to ongoing issues in Brazil. This is nothing to be concerned about, however. Netflix remains the leader in streaming, a market with a massive growth runway as television viewing hours continue to migrate there.
Netflix is also looking at an important advertising opportunity. The company launched a low-price, ad-supported tier a few years ago, and it is slowly starting to reap the benefits, according to management. Netflix said it saw its best quarter ever for ad sales and doubled its U.S. ad commitment.
Netflix's access to data on viewer habits makes it an excellent platform to launch targeted ads, so it's not surprising to see the company's success here. Overall, between the growth of streaming and the opportunities in advertising, Netflix still appears to have excellent prospects. That's one more reason it could be the most prominent stock split of 2026.
