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Move Over, Oracle! This Industry Leader Is Ideally Positioned to Become Wall Street's Next Trillion-Dollar Stock.
The Motley Fool· 2025-09-16 07:06
Though cloud giant Oracle came within a stone's throw of reaching the psychologically important $1 trillion valuation mark, another company is better suited to beat it to the punch.On Wall Street, market cap serves as a differentiator of good and great businesses. While there are plenty of budding small- and mid-cap companies, businesses with valuations in excess of $10 billion have (more often than not) demonstrated their innovative capacity and backed up their worth to Wall Street.But among this class of ...
Could These 3 Dividend Kings Be Worth $1 Trillion in 10 Years?
The Motley Fool· 2025-09-04 08:09
Core Insights - The article discusses the potential of three major healthcare companies—AbbVie, Johnson & Johnson, and Abbott Laboratories—to reach a market capitalization of $1 trillion within the next decade, highlighting their current market caps and required growth rates to achieve this milestone. Group 1: AbbVie - AbbVie has a current market cap of approximately $369 billion and requires a compound annual growth rate (CAGR) of 10.5% to join the trillion-dollar club within 10 years [4] - The company has seen positive revenue and earnings growth driven by its immunology drugs, Skyrizi and Rinvoq, which are expected to continue their sales growth until patent expiration in 2033 [5] - AbbVie has a strong pipeline and has made recent acquisitions in various fields, enhancing its growth prospects [6] - The company has increased its dividends for 53 consecutive years, offering a forward yield of 3% [7][8] Group 2: Johnson & Johnson - Johnson & Johnson currently has a market cap of $429 billion and needs an 8.8% CAGR over the next decade to reach a trillion-dollar valuation [9] - The company maintains consistent revenue and earnings due to its diverse portfolio of drugs and medical devices, despite facing some patent cliffs [10] - Johnson & Johnson is developing a robotic-assisted surgery device, Ottava, which could be a significant growth driver [11] - The company has a solid dividend history with 62 consecutive years of payout increases and a forward yield of approximately 3% [12] Group 3: Abbott Laboratories - Abbott Laboratories has a market cap of $231 billion and requires a CAGR of 15.8% to reach $1 trillion by 2035, which is considered a challenging target [13] - The company is diversified across four segments: medical devices, nutrition, diagnostics, and established pharmaceuticals, which helps mitigate risks [13] - Abbott is a leader in continuous glucose monitoring devices, with its FreeStyle Libre being the most successful medical device in history by dollar sales [15] - The company has increased its dividends for 53 consecutive years, with a forward yield of 1.8% [16][17]
Prediction: This Tariff-Resistant Growth Stock Could Join the Trillion-Dollar Club by 2030
The Motley Fool· 2025-06-10 00:00
Core Viewpoint - Netflix is positioned to potentially reach a trillion-dollar valuation by 2030, driven by its insulated streaming business model and strategic investments in original content and advertising [2][8][12]. Group 1: Financial Performance - As of June 6, 2025, Netflix has a market capitalization of $528 billion and has seen its shares increase by 39% in 2025 [1]. - The company aims to double its revenue to $80 billion and triple its operating income to approximately $33 billion over the next five years [8]. - To achieve a $1 trillion market cap, Netflix would need to trade at a price-to-sales (P/S) multiple of 12.5 or about 30 times its operating income [13]. Group 2: Competitive Landscape - Netflix faces increasing competition from major players such as Walt Disney, Paramount Global, Warner Bros. Discovery, Amazon, Alphabet, and Apple [9]. - The company has invested heavily in original content and live broadcasting, including partnerships with the NFL and TKO Group Holdings [10]. Group 3: Strategic Initiatives - Netflix has introduced a low-priced ad-supported tier to remain competitive in the streaming market [11]. - Both subscription and advertising revenues are high-margin for Netflix, which could lead to continued revenue growth and improved operating profit margins [12]. Group 4: Valuation Outlook - Current trends suggest that Netflix can sustain the implied multiples needed to reach a $1 trillion valuation, provided it maintains its market share and does not show signs of deceleration [15][16]. - The company is expected to eventually achieve a trillion-dollar valuation, contingent on successful execution of its strategic initiatives [16][17].
Prediction: This Will Be the First Entertainment Stock to Reach a $1 Trillion Valuation (Hint: It's Not Disney)
The Motley Fool· 2025-04-22 11:10
The No. 1 name in streaming has its sights set on joining the coveted trillion-dollar club. Breaking down the math behind the trillion-dollar valuation While the plans to scale Netflix make sense on a fundamental level, what do the financial figures look like behind the company's five-year forecast? Per the company's five-year plan, Netflix's revenue is forecast to reach about $80 billion with operating income of about $30 billion by 2030. To put this into context, this assumes the company doubles its reven ...