Can Netflix Still Become a $1 Trillion Company by 2030?

Group 1 - The core objective of Netflix is to achieve a $1 trillion valuation by 2030, but the stock price has declined from approximately $400 billion to $365 billion over the past nine months [1][2] - Netflix's disappointing outlook for 2026 and negative investor sentiment regarding its planned acquisition of Warner Bros. Discovery complicate the path to the $1 trillion goal [2] - The current stock price is near its 52-week low, presenting a potential buying opportunity for long-term investors [2] Group 2 - Netflix's financial strategy relies on predictable subscription revenue, allowing the company to set operating-margin targets and plan content expenses accordingly [4] - Management aims to double its 2024 revenue of $39 billion by 2030, which includes $9 billion in global ad sales, and expects to increase operating income from $10 billion to $30 billion, targeting an operating margin of 38.5% [5] - In 2025, Netflix outperformed expectations with a 16% revenue increase and an operating margin expansion to 29.5%, alongside advertising revenue climbing to over $1.5 billion and a subscriber count exceeding 325 million [7] Group 3 - The strong performance in 2025 is attributed to factors that may not be repeatable in 2026, raising concerns about a potential slowdown [8] - While Netflix's execution has been strong, the company also requires favorable market conditions to achieve its valuation goals [9]