Meet the Powerhouse Streaming Stock That Wants to Double Revenue and Reach a $1 Trillion Market Cap by 2030

Core Viewpoint - Netflix aims to double its revenue and more than double its market cap to $1 trillion over the next five years, positioning itself as a leader in the streaming industry [2]. Group 1: Business Performance - Netflix has achieved significant growth, adding over 41.3 million new subscribers in 2024, with a stock increase of about 11% this year and over 78% in the last 12 months [4]. - The company reported a 13% revenue growth from the prior quarter in its first-quarter earnings for 2025, marking a shift as it no longer reports subscriber data [4]. - MoffettNathanson's report states that Netflix has "won the streaming wars" and sees substantial growth potential ahead [5]. Group 2: Subscriber Growth and Revenue Projections - Netflix executives project global subscribers to grow from slightly over 301 million to 410 million by 2030, with revenue expected to double from $39 billion in 2024 [5]. - The company aims to achieve $9 billion in global annual ad revenue by 2030, with MoffettNathanson estimating $6 billion in ad revenue by 2027 [6]. Group 3: Pricing Strategy - Netflix offers various pricing tiers, from an ad-supported plan at $7.99 per month to a premium ad-free plan at $24.99 per month, making it more accessible to a wider audience [6]. - The average revenue per member in the U.S. was $17.26 at the end of 2024, while it was as low as $7.34 in the Asia-Pacific region, indicating potential for revenue growth [8]. Group 4: Market Position and Content Strategy - Netflix has built a strong global audience through diverse content offerings and has ventured into live programming, such as sports, which has attracted more viewers [11]. - The subscriber breakdown by region at the end of 2024 shows significant opportunities for growth in foreign markets [10]. Group 5: Valuation and Future Potential - The stock trades at 45 times its operating earnings and about 10 times sales, with potential market cap estimates reaching $1.25 trillion based on operating income and $870 billion based on revenue if growth targets are met [12]. - While multiples may decrease as the company grows, achieving a $1 trillion market cap remains a feasible goal [13].