Market Outlook - The stock market is expected to end 2024 positively, with select equities likely to see further upside [1] - Anticipated friendly policies from the upcoming Donald Trump administration are expected to drive a stock market rally [1] Netflix (NASDAQ: NFLX) - Netflix has shown impressive performance in 2024, driven by investments in original programming and strong brand loyalty [3] - The company is expanding into live streaming and local-language content to maintain its market dominance [3] - As of now, Netflix's stock has rallied 87% year-to-date, trading at $877 with a market cap of $382 billion, requiring an additional 30% upside to reach $500 billion [6] - Analysts have raised price targets for Netflix, with Maria Ripps increasing her target to $940 and Mark Mahaney raising his to $950, reflecting positive market sentiment and growth potential [7][8] - Netflix's ad-supported tier has reached 70 million monthly active users, indicating strong user engagement [4] Mastercard (NYSE: MA) - Mastercard is positioned to reach a $500 billion market capitalization, trading at $526.98 with a market cap of $485 billion, needing a 3% upside to achieve the milestone [10] - The company has demonstrated significant growth potential due to its asset-light business model and strong financial position [9] - Mastercard earns revenue primarily from transaction fees, with 63% of its revenue derived from payment processing [9] - The global network of 3.4 billion cards and 150 million merchants creates a valuable ecosystem for Mastercard [10] Conclusion - Both Netflix and Mastercard possess strong fundamentals that could drive their stocks to a $500 billion market cap by 2025 [11]
2 stocks to reach a $500 billion market cap in 2025