Anticipated Stock Divisions in 2025: Two AI Shares Soaring 115% and 350% in Two Years, Recommended for Immediate Purchase by Wall Street Experts
Investors often find themselves drawn to stock splits, considering they're often subtle indicators of thriving businesses. Stock splits become necessary only after substantial share price appreciation, a scenario rarely witnessed by struggling companies. This past year saw several artificial intelligence companies undertaking stock splits to manage their skyrocketing share prices. Here's a run-down:
- Arista Networks returned an impressive 324% in the last two years. They conducted a 4-for-1 stock split in December 2024.
- Broadcom returned an equally impressive 318% during the same timeframe. They executed a 10-for-1 stock split in July 2024.
- Nvidia, boasting a staggering 640% return, performed a 10-for-1 stock split in June 2024.
- Super Micro Computer also returned 325% and carried out a 10-for-1 stock split in October 2024.
Meta Platforms (META 1.74%) and Salesforce (CRM -0.23%) both posted exceptional 350% and 115% returns, respectively, over the past two years. With such significant price gains, these companies also appear to be potential stock-split candidates in 2025. Notably, Wall Street's optimistic stance towards Meta Platforms and Salesforce, suggests a promising future.
Experts like Barton Crockett at Rosenblatt have projected an impressive target price of $811 for Meta Platforms, representing a 25% uptick from its current price of $647. Likewise, Brad Sills at Bank of America has pegged Salesforce with a target price of $440, a 32% increase from its current share price of $333.
Meta Platforms, popular for owning four of the top seven social media platforms globally, has enjoyed a competitive edge, allowing it to collect data and target advertising campaigns for brands. As a result, Meta is the second-largest player in the ad tech sector, after Google, and is anticipated to increase its market share through 2026 [1].
In the third quarter of 202X, Meta Platforms reported strong financial results, surpassing Wall Street estimates for both revenue and earnings. Revenue shot up 19% to $40 billion, while operating margins expanded 3 percentage points. Notably, GAAP net income also jumped 37% to $6.03 per diluted share [1].
However, CEO Mark Zuckerberg allayed fears around heavy investments in AI infrastructure and Reality Labs, assuring investors of promising developments. "AI-driven feed and video recommendations have led to an 8% increase in user engagement on Facebook and a 6% increase on Instagram this year," Zuckerberg stated [1]. He also mentioned that Meta AI had over 500 million monthly active users, placing it on track to become the most popular AI assistant by the end of 2024.
Meta recently announced Orion, its first fully holographic augmented reality glasses. Zuckerberg informed analysts that they were "not too far off from being able to deliver great-looking glasses that seamlessly blend the physical and digital worlds" [1].
Salesforce, a customer relationship management (CRM) software provider, holds a remarkable 22% share in the CRM market – more than its four closest competitors combined. In the third quarter of fiscal 202X, Salesforce posted solid financial results, with revenue increasing 8% to $9.4 billion and non-GAAP net income growing 14% to $2.41 per diluted share. The company also revised its full-year guidance, projecting sales growth of 9% in fiscal 202X [1].
Recently, Salesforce introduced Agentforce, a platform that provides businesses with AI-powered digital labor. By offering autonomous decision-making capabilities, AI agents surpass traditional AI copilots by leaps and bounds [1].
Wall Street expects Salesforce's adjusted earnings to grow by 12% annually through fiscal 202X. Despite the current valuation of 34 times adjusted earnings, this optimistic growth projection mitigates its high cost. For investors seeking opportunities with a minimum three-year time horizon, it may be beneficial to secure a position in Salesforce [1].
[1] Enrichment Data Sources: Scutify, CNBC, Markets Insider, Forbes, Wall Street Survivor, Zacks, Motley Fool, CNN Business, Slanted
Given the context, here are two sentences that contain the words 'finance', 'investing', and 'money':
- Investors looking into the tech sector might consider pouring money into Meta Platforms and Salesforce, both showing strong performance in finance and promising growth projects in investing.
- With Meta Platforms and Salesforce potentially undertaking stock splits due to their significant financial gains, interested individuals should closely monitor these companies from a finance and investing perspective.