The Nasdaq has been unstoppable for more than three years now. And history suggests the story isn’t anywhere close to finished. If anything, the data says the rally could actually accelerate into 2026. And when long bull markets enter their middle chapters, two types of companies tend to lead the next leg of the breakout:
consistent compounders and fresh stock-split winners.
Today, we’re diving into both themes—unpacking why the Nasdaq may surge again in 2026, and why two stock-split giants, Netflix and Interactive Brokers, might deserve a place on your watchlist.
The Nasdaq’s Rare Setup for 2026
Let’s start with the backdrop.
According to data highlighted in the article from Carson Group strategist Ryan Detrick, only five bull markets in the past 50 years have lasted longer than three years. And here’s the interesting part:
Every single one of them kept rallying—typically for eight years on average. Even the shortest extended bull run lasted five years.
That puts today’s market in rare and historically bullish territory.
Add in cooling interest rates, rising corporate earnings, and the accelerating adoption of artificial intelligence, and suddenly, the runway stretches pretty far.
Now layer on investor excitement around stock splits—a theme returning in a big way. According to Bank of America analyst Jared Woodard, companies that announce stock splits gain an average of 25% in the following year, more than double the 12% return of the S&P 500.
So in today’s environment, stock splits aren’t gimmicks. They’re signals—typically sent by companies that are already executing at a high level.
And that brings us to two names highlighted in the article:
Netflix and Interactive Brokers.
Stock-Split Pick #1: Netflix — A Decade of Dominance and a Fresh Split
Netflix has already delivered stunning performance. Shares are up 26% this year and an astonishing 862% over the past decade.
That kind of track record alone earns attention. But the real catalyst is the company’s new 10-for-1 stock split, completed recently—Netflix’s first split since 2015. Management doesn’t do this often, so when they do, it signals confidence about the next chapter.
And this next chapter is shaping up to be different from anything Netflix has done so far.
The Streaming Pivot: Advertising
Netflix’s ad-supported tier is growing fast—and I mean fast.
In Q3, the company logged its best ad sales quarter ever, reaching 190 million viewers and setting expectations that ad revenue will double in 2025.
Advertising is more profitable than subscription growth. So even if subscriber numbers grow moderately, revenue can expand much faster.
The Content Engine Still Works
Netflix also has a global phenomenon on its hands:
KPop Demon Hunters, its most successful film ever. It’s spent 20 weeks in the global Top 10, and the soundtrack’s hit single “Golden” dominated charts for 15 straight weeks.
Hits matter—a lot. Big content attracts new customers, reduces churn, and strengthens Netflix’s pricing power.
The Numbers Look Strong
In the most recent quarter:
- Revenue: $11.5 billion, up 17%
- EPS (adjusted): up 27%
- Q4 forecast: another 17% revenue jump and 28% EPS growth
The only critique? The stock is not cheap. Netflix trades at 35 times next year’s earnings. But historically, the company has earned those premiums with consistent execution.
For long-term investors, Netflix remains a global brand with expanding profit engines, durable competitive advantages, and a business model entering a new monetization phase.
Stock-Split Pick #2: Interactive Brokers — A Quiet Compounder With a 4-for-1 Split
The second stock mentioned in the article is a very different business from Netflix, but no less impressive.
Interactive Brokers, the low-cost global brokerage platform, has gained 45% this year and 512% over the past decade. That growth led to the company’s recent 4-for-1 stock split, completed in June.
But the more surprising part?
Even after such strong performance, Interactive Brokers is still reasonably valued.
Explosive User and Activity Growth
In Q3, the company delivered metrics that would make even fast-growing tech companies jealous:
- Brokerage accounts: 4.13 million, up 32%
- Customer equity: $758 billion, up 40%
- Daily revenue trades: 3.62 million, up 34%
These numbers signal two important things:
- People are opening accounts at a rapid rate.
- They are trading more once they get in.
That means higher activity, more commissions, more interest income, and more predictable revenue.
Financial Performance
In the third quarter:
- Revenue: $1.6 billion, up 21%
- EPS: up 40%
- And results beat Wall Street expectations comfortably.
The most compelling part of the story is valuation. Interactive Brokers trades at just 31 times trailing earnings—a number that looks small relative to its growth rate, profitability, and market share expansion.
In an environment where millions of new investors and traders continue entering the market globally, Interactive Brokers remains one of the most technologically advanced and lowest-cost platforms in the industry.
Why These Two Stocks Fit the 2026 Market Setup
Both companies share attributes that historically define long-term winners:
1. They posted years of strong fundamental gains
Stock splits aren’t accidents—they’re the result of sustained business momentum.
2. They are gaining market share in industries with long runways
Streaming and digital brokerage activity are still expanding worldwide.
3. They pair high growth with profitable operations
Both generate significant free cash flow and have scalable models.
4. They benefit from macro tailwinds heading into 2026
Lower interest rates, AI adoption, and a bullish market backdrop all support high-quality tech and fintech names.
And if the Nasdaq is truly entering the middle innings of a long bull run, leadership often shifts toward well-established, profitable growth compounds—exactly the profile of Netflix and Interactive Brokers.
Final Word
Nothing is guaranteed in markets. But history does offer guidance. Bull markets that last longer than three years usually don’t end—they tend to accelerate. And during these periods, companies with strong financials, expanding user bases, and stock-split momentum often outperform.
Netflix and Interactive Brokers both check those boxes.
So as 2026 approaches, and the Nasdaq continues charting its next chapter, these two stock-split winners might be worth your deeper research.