After all, if an attractive $500 stock were to split 10:1, bringing it to $50 a share, more investors are likely to jump in. In short, stock splits can change behavior. And in financial markets, behavior drives price action.

Plus, according to Morningstar.com, “Splits matter – because these stocks outperform after the announcement, by a lot. Average returns one year later are 25% vs. 12% for the S&P 500 SPX as a whole, say researchers at Bank of America. It’s worth brushing up on stock splits now, for two reasons. Stock splits are picking up again after a decade-long lull.” 

Below are three companies that have announced stock splits that may be positioned for upside based on oversold price action, improving fundamentals, and supportive macro trends.

Netflix (NFLX): Post-Split Ad Momentum and a Technical Reset

Netflix (NASDAQ: NFLX) completed a 10-for-1 stock split in November, lowering its share price into a more accessible range for both individual investors and certain institutional mandates. The immediate reaction wasn’t bullish — shares dropped to about $94.50 post-split — but this volatility may be creating an opportunity for accumulation.

Technically, NFLX is heavily oversold:

• RSI is deeply under 40
• MACD is curling toward a bullish crossover
• Williams’ %R signals selling exhaustion

A rebound to the $110 range seems achievable as initial resistance. The split doesn’t alter the business, but it does reshape the narrative, and narratives matter at key turning points.

Fundamentally, Netflix is evolving. Its advertising tier is on track to double revenue year over year, a meaningful development that can boost margins and generate a second engine of growth beyond subscription income. With content spend stabilizing and its global scale still unmatched, the lower post-split share price could attract a wave of buyers in early 2026, especially if technicals confirm.

O’Reilly Automotive (ORLY): A Durable Compounder Post-Split

O’Reilly Automotive (NASDAQ: ORLY) executed a 15-for-1 stock split in June, aimed not only at investors but at employees. CEO Brad Beckham highlighted that the split allows team members to buy whole shares through payroll programs at a 15% discount, creating a stronger internal equity culture. That strategy can matter more than traders realize; companies with employee ownership alignment often deliver better long-term performance.

The market initially rewarded the move. ORLY jumped from about $90 to $108.72, a gain of nearly 20%. Since then, it has pulled back to roughly $92.25, where, like Netflix, it sits deeply oversold on RSI, MACD, and Williams’ %R.

This looks like a potential buy-the-dip zone. A recovery to $100 is a reasonable first target in 2026, with further upside possible if the economy stabilizes and auto maintenance spending remains durable. With the average car age in the U.S. climbing above 12 years — the highest level on record — the demand backdrop for auto parts and repair remains supportive..

ServiceNow (NOW): Stock Split + Cybersecurity + AI = Growth Vector

ServiceNow (NYSE: NOW) completed its 5-for-1 stock split on December 18 to make shares more affordable for individual investors. Now trading near $153.89, the stock is sitting on strong support dating back to April, and technical indicators show a potential inflection point. A gap-fill rally to $175 is the first area to watch.

But what’s arguably more important is timing: the stock split arrived just as ServiceNow announced a $7.75 billion acquisition of cybersecurity firm Armis, a move designed to expand its footprint in AI-driven security automation. In an AI age where enterprise vulnerabilities are multiplying, demand for automated defense is likely to accelerate.

CEO Bill McDermott noted that the deal could triple the company’s market opportunity in security and risk solutions. In his words:

“In this AI world, especially with the agents, you’re going to need to protect enterprises because every intrusion is a multimillion-dollar problem.”

Why Stock Splits Matter in 2026

Stock splits may not change intrinsic value — but they do change market psychology, participation, and in many cases momentum. Historically, they’ve been associated with above-average performance, and in an environment where interest rates are stabilizing and liquidity is returning, these signals may matter even more.

Investors don’t need to chase every split, but they should track them. When a quality company executes a split from a position of strength — and the technicals align — it can be a compelling signal headed into a new year.