There is a highly efficient stock that hasn’t been a trillion-dollar company, but it may be in the near future.
The industry-leading Internet-driven company continues to release steady growth and impressive profitability.
Management believes that by 2030, the market value may reach $1 trillion, which may be a positive stance.
10 Better Stocks than Netflix ›
Over the past few decades, technology businesses have had a huge impact on our society and economy. These companies rely heavily on technology to provide valuable products and services to customers around the world. The six most valuable companies are Microsoft,,,,, Nvidia,,,,, apple,,,,, Amazon,,,,, letterand Meta Platform (As of July 6).
It is no surprise that their stock price has been the monster winner for investors over the years. However, there is a great business not on this exclusive list, with a jaw-dropping 1,270% of its stock in the past 10 years and a 59,140% rise in the past 20 years.
Can this unstoppable stock jump on the leap and join the $1 trillion club?
Image source: Getty Images.
Netflix (NASDAQ: NFLX) May be excluded from the so-calledSeven, seven“But don’t let that hide what a great business it is. Looking at the trillion-dollar companies mentioned earlier, I think Netflix deserves to mention in the same category.
It leverages its data capabilities, technical infrastructure, and a wide range of Internet and connected devices to build a global media powerhouse of scale. Perhaps no company really ruins its industry and becomes so dominant in new memories like Netflix.
About two decades ago, early executives, most notably co-founder Reed Hastings, discovered that the internet would dramatically change the way people consume video entertainment. The days of being forced to spend a lot of monthly expenses, lock in unfriendly contracts, and watching shows and movies at specific times have disappeared. Netflix has triggered a tendency to cut ropes, making the family experience far exceeding it.
The growth is spectacular. Netflix launched streaming in 2007 about 18 years ago. As of December 31, 2024, it has 302 million subscribers in 190 countries and its competitors are working to keep up.
In April, Netflix’s internal target leaked, and it was revealed that the leadership team set a goal to reach a $1 trillion goal Market value By 2030. As of this writing, the business is worth $528 billion. This appearance has attracted people’s attention.
To help it reach its $1 trillion market capitalization, Netflix executives believe the business will reach two key financial goals for the remainder of the decade. First, they see Netflix revenue doubled between 2024 and 2030. I guess this involves continuing to increase the subscriber base. However, this could become a factor as the company no longer reports this key metric. It is also important to increase advertising revenue, which is a relatively new focus for Netflix.
In terms of profitability, management believes that operating income will triple between 2024 and 2030. To achieve this, I think Netflix will squeeze more juice out of its customer base with its strategically resilient price capability. This works well in developed markets in the United States and Canada. Investors will discover how emerging countries accept higher prices over time.
If the company’s market cap hits the coveted $1 trillion mark in 2030, Netflix stock will essentially double. As management hopes, revenue doubles, and stocks Price to sales Multiple (p/s) remain constant at 13.5.
I’m not confident. Stocks are very expensive these days. Assuming P/S returns to an average of 7.9 10 years behind, the stock will only rise 17% over the next five years. This shows the risk of poor performance from investors.
Given that Netflix is a more mature business today, I wouldn’t be surprised if revenue slowed down past earnings. I think that a $1 trillion club over the next decade is a more accomplishable goal than management’s 2030 goal.
Before you buy stock on Netflix, consider the following:
this Motley Fool Stock Advisor The analyst team just confirmed what they think is 10 Best Stocks For investors, buying now…Netflix is not one of them. Ten stocks with layoffs could generate monster returns in the coming years.
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*Stock consultant returns as of June 9, 2025
John Mackey, former CEO of Amazon’s subsidiary Whole Foods Market, is a member of the board of directors of Motley Fool. Alphabet executive Suzanne Frey is a member of the board of directors of Motley Fool. Randi Zuckerberg is a sister of former marketing development director, Facebook spokesperson, and Meta Platform CEO Mark Zuckerberg, and a member of the Motley Fools’ board of directors. Neil Patel has no position in any of the stocks mentioned. Motley Fool owns and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix and Nvidia. Motley Fools suggest the following options: January 1, 2026, Microsoft $395 Phone, Short January 2026, Microsoft $405 Phone. Motley Fool has a disclosure policy.
Can this unstoppable stock join Microsoft, NVIDIA, Apple, Amazon, Letters, Meta Platforms and Tesla’s $1 trillion club? Originally published by Motley Fool
