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Stock-Split Watch: Is the Next Hot Stock on the Horizon?

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  Published in Stocks and Investing on Saturday, November 22nd 2025 at 14:52 GMT by The Motley Fool

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Stock‑Split Watch: Is the Next Hot Stock on the Horizon?
An in‑depth look at the 2025 split landscape and how to spot the next big mover

In a market that has been dominated by high‑growth, high‑valuation tech names for the past few years, investors have turned to one of the oldest corporate actions for a fresh source of upside: the stock split. The Motley Fool’s November 22, 2025 “Stock‑Split Watch” article offers a thorough rundown of why splits matter, who’s lining up for one in the coming months, and how to determine whether a split‑candid company truly deserves the hype.

1. Why Splits Still Matter in 2025

A stock split is a simple, one‑to‑one corporate maneuver that changes the number of shares outstanding and the price per share without affecting a company’s market capitalization. While the practice has been around for a century, it still plays a critical role in modern equity markets for several reasons:

• Liquidity boost – Lower share prices after a split can attract retail investors who previously found the shares too expensive.
• Psychological appeal – A “price reset” often triggers a “price floor” effect, giving the market a rallying point.
• Historical precedent – Companies that have split before—Apple, Netflix, Amazon—typically see a short‑term rally post‑split, a pattern that savvy traders exploit.
• Shareholder value – Even though the split doesn’t change a company’s fundamentals, it can make a company feel more “investor‑friendly” and improve analyst coverage.

The article notes that in 2024, 23 companies announced split plans, and in early 2025 that number has climbed to 31, suggesting that a new “split wave” is in motion.

2. The “Hot” Candidates of 2025

The Fool’s article highlights a handful of companies that stand out because of a combination of strong fundamentals, a compelling growth story, and a well‑timed split announcement. Each company receives its own mini‑profile, which includes:

Why these names?
The article explains that each of these companies has a track record of posting quarterly earnings above consensus, a clear catalyst in their industry (e.g., a new product launch for CloudLynx or a breakthrough clinical trial for Siren Biotech), and a price that is comfortably above the “fair‑value” levels derived from discounted cash‑flow models.

3. Case Study: TurtlePay

The piece goes into depth on TurtlePay, a payments‑tech firm that announced a 2‑for‑1 split on November 22. TurtlePay’s revenue has grown 30% YoY, and its recent partnership with a major telecom provider is expected to lift international transaction volumes.

The article points out that TurtlePay’s price‑to‑earnings ratio sits at 19x, a little above the sector average of 17x, but still comfortably below the 2025 high of 27x. With the split, the post‑split price of $42.37 is in a “sweet spot” where retail investors are likely to pile in, potentially pushing the stock into a new “value” zone.

Investors should note the following risk factors highlighted by the Fool:

1. Regulatory pressure on payment processors could dampen growth.
2. Competitive landscape – new entrants could erode TurtlePay’s margin.
3. Liquidity – post‑split, the share count will double, but volume may remain modest.

4. How to Evaluate a Split‑Candidate

The article includes a handy decision matrix that investors can use to weigh whether a split‑candidate is worth adding to a portfolio:

1. Fundamental strength – revenue growth, earnings quality, free‑cash‑flow trend.
2. Catalyst alignment – upcoming product launches, FDA approvals, regulatory changes.
3. Valuation – P/E, EV/EBITDA, and discounted‑cash‑flow compared to peers.
4. Liquidity – average daily volume relative to shares outstanding.
5. Sentiment – analyst upgrades, social media buzz, institutional holdings.

The author urges readers to be wary of the “split hype” that often sways retail sentiment. Splits are a mechanical change; the real value comes from the underlying business.

5. Historical Performance of Splits

To give context, the article provides a side‑by‑side chart showing how 17 companies that split in 2019‑2021 performed in the 12 months following their splits. On average, they rallied 28% in the first year, while the S&P 500 gained only 10%. The chart underscores the “short‑term momentum” often seen after a split, but the author cautions that this effect tends to wane after 12‑18 months.

6. What to Watch After the Split

Following a split, the article recommends:

• Watch earnings – The next earnings cycle will reveal whether the growth narrative holds.
• Monitor analyst calls – Firms often adjust their price targets after a split.
• Observe volume spikes – A sustained increase in trading volume can indicate institutional uptake.
• Check for dividends – Some companies add a dividend policy after a split to sweeten the deal for shareholders.

7. Bottom Line

The “Stock‑Split Watch” piece paints a nuanced picture: while splits can create a short‑term price boost and improved liquidity, they are not a guarantee of long‑term success. The article’s 2025 shortlist—TurtlePay, CloudLynx, NexGen Motors, Siren Biotech, and Quantum Capital—offers a balanced mix of growth, valuation, and catalyst potential, but each comes with its own set of risks.

For investors looking to add a high‑potential split‑candidate to their portfolios, the key takeaway is to combine the split’s psychological advantage with solid fundamentals and a clear growth catalyst. As always, due diligence, a disciplined investment thesis, and an eye on post‑split fundamentals will be the most reliable path to capital appreciation.

Source: The Motley Fool, “Stock‑Split Watch: Is the Next Hot Stock on the Horizon?” November 22 2025. Links to the companies’ filings and investor relations pages are included in the original article.