Can This Unstoppable Stock Join Apple, Microsoft, Nvidia, Amazon, Alphabet, and Meta Platforms in the $1 Trillion Club by 2035?

Core Viewpoint - The article discusses Netflix's potential to join the trillion-dollar market cap club by 2035, highlighting its impressive growth and market position [2][7]. Company Overview - Netflix currently has a market cap of $384 billion as of March 13, and its stock has increased by 66,600% over the past 20 years, making it one of the best performers in the market [2][4]. - The company has disrupted the traditional media market and is credited with creating the streaming industry [3]. Growth Metrics - Netflix's customer base has grown from 167 million five years ago to 302 million today, with operations in 190 countries [4]. - Revenue has increased from $20 billion in 2019 to $39 billion last year [4]. Strategic Initiatives - The company is implementing strategies to sustain growth, including cracking down on password sharing, introducing a cheaper ad-based tier, and engaging in live events and sports [5]. - Netflix is targeting a 29% operating margin and expects free cash flow to reach $8 billion by 2025, indicating a focus on profitability [6]. Market Cap Projections - To reach a $1 trillion market cap, Netflix's market cap needs to rise by 160% over the next 10 years, which is feasible given its past growth of 1,320% in the last decade [7]. - The stock currently has a price-to-earnings (P/E) ratio of 45.3, and for the company to achieve a $1 trillion market cap, earnings per share (EPS) must grow by 16.7% annually [8]. Valuation Considerations - Despite the positive outlook, the current P/E ratio of 45.3 is considered steep, and the stock is trading 15% below its all-time high [9]. - The valuation reflects the company's strong performance, but it may not provide a margin of safety for investors [10].