Could Netflix Stock Join the Trillion-Dollar Club by 2030?

Core Viewpoint - Netflix has demonstrated significant growth, with a valuation nearing $530 billion as of October 21, and aims to potentially reach a $1 trillion market cap by 2030 through strategic expansions and earnings growth [1][2][5]. Group 1: Growth and Valuation - Over the past decade, Netflix's stock has increased by more than 1,100%, turning a $10,000 investment into approximately $127,000 [1]. - The company has established a global service in over 190 countries and is expanding into sports content and advertising, contributing to both revenue and earnings growth [3]. - Last year, Netflix's net income rose by 61% to $8.7 billion, with steadily increasing margins over the past decade [6]. Group 2: Market Potential - To achieve a $1 trillion market cap, Netflix's stock would need to increase by over 90%, translating to a compound annual growth rate of about 13.8% over five years [5]. - The stock currently trades at a price-to-earnings (P/E) multiple of 53, which may be justified given the company's rapid earnings growth and leading position in the streaming industry [4]. Group 3: Strategic Execution - Netflix's earnings growth has outpaced revenue growth in recent years, with shares trading at around 50 times trailing earnings [8]. - Management has set ambitious targets for the end of the decade, including at least 400 million global subscribers, approximately $80 billion in annual revenue (with $9 billion from advertising), and around $30 billion in operating income [9].