Group 1 - Costco's share price has increased by 171% over the past five years, reflecting its strong position in the retail sector with a current market cap of $434 billion [1] - The company is expected to expand significantly in the next five years, with management planning to open 25 to 30 new warehouses annually, which will contribute to revenue growth [2] - Costco has consistently achieved same-store sales (SSS) growth, with a 6.4% increase in the first quarter of fiscal 2026 and a further 7% increase in December, indicating resilience despite economic challenges [3] Group 2 - The net income of Costco has risen by 102% from fiscal 2020 to fiscal 2025, supported by a growing membership base that enhances spending at its stores [4] - Currently, Costco's market cap would need to increase by 129% to reach the $1 trillion mark by late January 2031, a target that appears achievable based on historical growth trends [7] - However, Costco's valuation is high, with a price-to-earnings ratio of 52.7, which is approximately double that of the S&P 500, suggesting potential pressure on its stock valuation in the coming years [8]

Core Insights - The article discusses the potential for Netflix to join the trillion-dollar club by 2035, highlighting its past success and future growth prospects [1][7][13] Company Performance - Netflix has transformed video consumption, allowing users to watch content on demand at a lower price, leading to significant subscriber growth [4][5] - As of the end of 2024, Netflix had 302 million subscribers, contributing to substantial revenue increases [5] - The company is expected to achieve an operating margin of approximately 30% by 2025, with free cash flow projected between $8 billion and $8.5 billion [6] Market Position - Netflix's revenue grew by 16% year-over-year in Q2, with a revenue guidance of $45 billion for fiscal 2025 [8] - Despite intense competition from platforms like Disney+, HBO Max, and Amazon Prime Video, Netflix is anticipated to expand significantly in regions such as Latin America, Africa, and Asia [9][10] Financial Outlook - Netflix's current market cap is $534 billion, requiring it to double in the next decade to reach $1 trillion, implying a 7% annualized gain [11] - The company's market cap has increased by 1,140% over the past decade, making the target of joining the trillion-dollar club by 2035 seem reasonable [11][13] - However, the stock's price-to-earnings ratio is currently at 53.6, which has risen by 167% in the last three years, indicating a potential hurdle for further stock gains [12]