Three Unstoppable Stocks With Competitive Moats That Appear Poised...
Key Points Three brand-name businesses are perfectly positioned to become Wall Street's premier stock splits in the new year. While there's no denying that artificial intelligence (AI) has played an important role in sending the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite to respective all-time highs, it's imperative not to overlook the role stock-split euphoria has had in lifting key components within these indexes. A stock split is a tool publicly traded companies have at their disposal that allows them to cosmetically adjust their share price and outstanding share count by the same magnitude. These changes are superficial in the sense that they have no impact on a company's market cap or operating performance.
Meta Platforms
The first industry juggernaut that appears poised to split its shares in the new year is leading social media company Meta Platforms (META -0.81%). Meta is the only member of the "Magnificent Seven" that's never conducted a split (it went public in 2012). But with shares of the company briefly topping $600 in October, the ingredients are on the table for Meta's board to take action. Meta's outperformance is a function of attracting more daily active people than any other social media platform. During the September-ended quarter, Facebook, Instagram, WhatsApp, Facebook Messenger, Threads, and the company's other apps, collectively lured an average of 3.29 billion active users per day! Advertisers are well-aware that Meta offers the best opportunity for their message(s) to reach as many users as possible. Thus, Meta can typically command exceptional ad-pricing power.
Netflix
A second unstoppable stock with a competitive moat that looks primed for a forward stock split is streaming colossus Netflix (NFLX 0.27%). Since going public in May 2002, Netflix has conducted two splits: 2-for-1 in February 2004, and 7-for-1 in July 2015. With shares of the company tipping the scales at $871, it shows potential for another split. Netflix's first-mover advantages in the streaming space have been key to its success, along with substantial pricing power and a subscription-driven operating model.
Costco Wholesale
The third unstoppable stock with a competitive moat that looks ripe to become Wall Street's next stock-split stock in 2025 is warehouse club Costco Wholesale (COST 0.89%). Costco has completed three forward splits since going public. Costco's membership model, along with its ability to purchase products in bulk and provide consumer staples, sets it apart in the retail industry. With shares topping $930, a split may be on the horizon to make shares more affordable.
