Although the rise of artificial intelligence (AI) has hogged most of the glory on Wall Street, don't overlook stock-split euphoria as a source of strength for equities. A stock split is an event that allows a public company to adjust its share price and outstanding share count without affecting its market cap or underlying operating performance.
Around a half-dozen high-profile companies have completed forward stock splits in 2026 -- but their outlooks differ greatly. Whereas online travel titan Booking Holdings (BKNG -0.29%) makes for a sensational buy right now, high-flying AI cybersecurity juggernaut CrowdStrike Holdings (CRWD -0.05%) is a stock-split stock to avoid.
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The stock-split stock to add to your shopping cart: Booking Holdings
Arguably, the most attractive stock-split stock to buy right now is the first high-profile company to announce a forward split in 2026: Booking Holdings. The company's first-ever forward split (25-for-1) took effect on April 6, lowering its share price from around $4,184 to roughly $167 at the time.
What makes Booking special is its laundry list of competitive advantages. For example, it's Europe's premier online travel booking site, and the company is making serious inroads in Asia's online booking market. Its dominant European share, coupled with faster growth in Asia, helps it overcome a competitive U.S. travel landscape.
NASDAQ: BKNG
Key Data Points
Booking's Connected Trip strategy is also paying off. It's encouraging travelers to stay within its ecosystem, which allows for purchases of hotel stays, vehicle rentals, flights, and travel experiences. The global travel market is enormous, and Booking Holdings is steadily grabbing a larger piece of that pie.
But best of all, Booking Holdings is historically inexpensive. Thanks to its competitive edges and a hearty share repurchase program, Booking is trading at 17 times estimated earnings per share for 2027. That's a roughly 9% discount to its trailing five-year average.
Image source: Getty Images.
The stock-split stock to put back on the shelf: CrowdStrike Holdings
At the other end of the spectrum is another operationally phenomenal stock-split stock whose valuation, unfortunately, doesn't make sense.
CrowdStrike completed its first-ever forward split on July 2. The company's 4-for-1 split reduced its share price from almost $773 to around $193.
There are several reasons behind CrowdStrike's roughly 1,300% gain since its June 2019 initial public offering. The company's AI-driven Falcon security platform is nimbler than on-premises solutions at recognizing and responding to potential end-user threats. CrowdStrike has also mastered the add-on sale, with 51% of its clients purchasing six or more cloud modules.
NASDAQ: CRWD
Key Data Points
But two glaring historical problems with CrowdStrike are difficult to ignore.
To begin with, every game-changing technology since the mid-1990s (including the internet) has experienced an early stage bubble-bursting event. Although CrowdStrike has demonstrated the utility of AI applications, it wouldn't be immune if history rhymed and the AI bubble burst.
The bigger issue for CrowdStrike, from an investment standpoint, is its valuation. While it absolutely deserves a premium, given its long list of competitive advantages, there's a limit as to how far this premium can be stretched. Historically, no stock has been able to sustain a price-to-sales (P/S) ratio above 30 for any extended timeline. CrowdStrike's P/S ratio is north of 44 (as of Aug. 11). It's priced for perfection in an industry where things are far from perfect.
