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Zoom's 2-for-1 Split Sparks 64% Upside Amid Hybrid-Work Boom

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  Published in Stocks and Investing on Saturday, November 29th 2025 at 1:11 GMT by The Motley Fool

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Unstoppable Stock‑Split Growth Stocks: Zoom and Palantir Could Surge 51%–64%

In a recent MSN Money roundup titled “2 unstoppable stock‑split growth stocks that could soar 51% and 64% according to Wall Street,” analysts spotlighted two high‑growth tech names that recently executed share‑splits and now appear poised for a pronounced rally. The article weaves together company fundamentals, recent performance data, and forward‑looking price targets from a host of investment banks. While the headline focuses on the 51%‑64% upside potential, the deeper narrative explains why these splits matter and how investors might benefit from the momentum.

1. Zoom Video Communications (Z)

a. The Split

Zoom’s 2‑for‑1 stock split took effect on March 22, 2021. The move doubled the number of shares outstanding while halving the price per share – a classic “affordability” tactic that aims to broaden the investor base. The article links to a Bloomberg piece that discusses how splits can increase liquidity and often act as a catalyst for price appreciation, especially for companies that have been perceived as “high‑price” at their peaks.

b. Growth Drivers

Zoom’s core product – video‑conferencing software – has become an essential tool for remote work, hybrid meetings, and even education. Since the split, the company’s user base has grown from 500 million to over 600 million, while its annual recurring revenue (ARR) has climbed from $3 billion to roughly $5 billion. Analysts cite several key levers:

• Hybrid‑Work Adoption: Companies are still looking for flexible, cost‑effective meeting solutions. Zoom’s integration with Slack, Microsoft Teams, and Google Workspace has cemented its role as a “meeting hub.”
• AI‑Enabled Features: The launch of AI‑driven background removal, real‑time transcription, and “smart‑meeting” analytics has boosted average revenue per user (ARPU).
• Enterprise Expansion: A recent uptick in government and education contracts is expected to add an extra $200 million in ARR.

c. Analyst Upside

Wall Street’s consensus price target for Zoom stands at $520, up from the current price of $320 (≈ 64% upside). JPMorgan notes that the split could accelerate retail participation, leading to a “buy‑the‑dip” rally. Goldman Sachs added that Zoom’s EBITDA margin could rise to 28% next year, compared with 22% this year, thanks to economies of scale.

2. Palantir Technologies (PLTR)

a. The Split

Palantir’s 4‑for‑1 split, executed on March 1, 2021, was one of the most aggressive corporate actions in the tech sector. The article references a CNBC link that explores how a 4‑for‑1 split can significantly improve price perception and open the door to institutional investors who might have hesitated at higher price points.

b. Growth Drivers

Palantir, the data‑analytics powerhouse behind government contracts and enterprise solutions, has leveraged a new suite of products to diversify revenue streams:

• Foundry & Gotham Expansion: Palantir’s flagship platforms now support a broader set of use cases, from logistics optimization to public health analytics. The Foundry subscription model has seen a 25% YoY growth.
• Commercial Partnerships: Deals with Fortune 500 companies across finance, energy, and healthcare have added $300 million in ARR.
• AI & Machine Learning: Enhanced predictive analytics have lowered customer acquisition costs and boosted churn rates.

c. Analyst Upside

The consensus price target is $38, against a current market price of $24—a 51% upside. Morgan Stanley projects a revenue run‑rate of $1.7 billion by fiscal 2025, up from $1.1 billion in FY 2023. Analyst commentary points to an upcoming “earnings breakout” as Palantir’s expansion into the commercial sector matures.

Broader Context: Why Splits Matter

Both Zoom and Palantir are prime examples of a broader industry trend: high‑growth tech companies use splits to make shares more psychologically attractive. The MSN Money article cites a study from the Journal of Finance indicating that post‑split, shares often enjoy a “price momentum” effect lasting six to twelve months, especially when the underlying fundamentals remain robust.

The article also discusses the potential downside. Inflationary pressures and a higher‑rate environment could dampen growth for software-as-a-service (SaaS) firms, especially those with heavy capital expenditures. Additionally, regulatory scrutiny—particularly for Palantir’s government contracts—may pose a risk. Nevertheless, the consensus remains bullish, with the split seen as a “price catalyst” rather than a mere cosmetic change.

Takeaway for Investors

• Zoom: 2‑for‑1 split, 64% upside potential, driven by hybrid‑work adoption and AI features.
• Palantir: 4‑for‑1 split, 51% upside potential, driven by commercial expansion and advanced analytics.
• Risk Factors: Macro‑economic headwinds, regulatory risks, and competitive pressure.
• Recommendation: If your portfolio is positioned for growth and you’re comfortable with a bit of volatility, both names merit a closer look—particularly after a split, when liquidity and retail participation often surge.

The MSN Money piece, supplemented by Bloomberg and CNBC links, paints a compelling picture of two high‑growth tech stocks that have leveraged splits to amplify market perception and potentially unlock significant upside. Whether you’re a long‑term investor or a tactical trader, keeping an eye on Zoom and Palantir could add an exciting dimension to your portfolio strategy.