There are high quality stocks that are not yet a trillion dollar company, but may be in the near future.
This industrial company continues to announce strong growth and impressive profitability.
The leadership believes that by 2030 A $ 1 trillion market limit is available, which can be an aggressive position.
10 shares we like more than Netflix ›
Over the past couple of decades, technology companies have become very influential to our society and economy. These companies are highly dependent on technology to introduce invaluable products and services to customers around the world. The six most valuable companies are MicrosoftIs it NvidiaIs it An appleIs it AmazonIs it Alphabetand Meta platforms (from July 6).
Not surprisingly, their stock prices over the years were the winners of the monsters. However, there is one great business that is not on this exclusive list, and its shares increase by 1,270%over the last 10 years, and over the last 20 years-59 140%.
Can these unstoppable promotions make a jump and join the other $ 1 trillion in the club?
Image Source: Getty Images.
Netflix (Nasdaq: NFLX) can be left out of the so -called ‘Great seven,“But don’t let this mask like a great business. Looking at those trillion -worth of trillion -worth of trillion, I would say Netflix deserves to be mentioned in the same category.
It used its data capabilities, technological infrastructure and a wide access to the Internet and connected devices to create a global media power plant. Perhaps no company really disrupted its industry and has become a dominant force in recent memory of Netflix.
About two decades ago, early leaders, especially the founders Reed Hastings, realized that the Internet would dramatically change how people consume video entertainment. The days when they were forced to spend huge monthly taxes, get involved in unfriendly contracts and watch shows and movies at a particular time. Netflix has caused a cord reduction trend that has given households much better experience.
The growth was impressive. Netflix launched a broadcast about 18 years ago in 2007. From 2024 December 31 He had 302 million subscribers in 190 countries and his competitors are trying to keep up.
April Netflix’s internal goals were leaked and it turned out that the leadership team set the goal of reaching $ 1 trillion The top limit of the market By 2030 Since this writing, the value of the business is $ 528 billion. This type of perspective points to attention.
Netflix executives believe that the business will achieve two main financial goals over the rest of the decade to help achieve the top $ 1 trillion market. First, they see Netflix revenue increases from 2024 to 2030. I imagine this means to continue to grow the subscriber base. However, this is likely to become a smaller factor as the company will no longer report this critical metric. It is also important to increase revenue from advertising – a relatively new Netflix focus.
In the field of profitability, management believes that operating income will increase triple from 2024 to 2030 to get there, I think Netflix will strategically facilitate the power of their prices to make more juice from the customer base. It worked well in developed markets, namely the US and Canada. Investors will learn how to accept rising countries over time.
If the company’s market top limit is up to 2030. Will reach the desired $ 1 trillion -worth sign, Netflix shares will not double. This is assumed that the income is double as it believes Price before sales Several (p/s) remains constant at 13.5.
I’m not sure. These days, stocks are very expensive. Assuming that the P/S returned to the 10-year average-7.9, shares would increase by only 17%over the next five years. This shows less lucrative risk to investors.
Given that Netflix is a more mature business these days, I would not be surprised if income slows down from previous profits. I think getting into a 1 trillion dollar club over the next decade is much more accessible to the goal rather than management – 2030.
Before buying Netflix, consider this:
Motley Fool Stock Advisor A team of analysts just found what they think is 10 best stocks Investors buy now … and Netflix was not one of them. 10 stocks that reduced the incision can return the monster in the coming years.
Consider whenNetflixThis list consisted of 2004. December 17th … If you have invested $ 1,000 during our recommendation, at our recommendation,You would have $ 660 341!* Or when NvidiaMade this list in 2005. April 15 … If you have invested $ 1,000 during our recommendation, at our recommendation,You would have $ 874,192!*
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*The stock advisor returns from 2025. June 9th
John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the Board of Motley Fool. Suzanne Frey, Alfabet executive, is a member of the Board of Motley Fool. Randi Zuckerberg, former Market Development Director and Facebook spokeswoman and Sister Meta Platforms CEO, Mark Zuckerberg, is a member of the Board of Motley Fool. Neil Patel has no position in any of the above shares. The Motley Fool has a position and recommends the alphabet, Amazon, Apple, Meta, Microsoft, Netflix and NVIDIA. The Motley fool recommends the following options: 2026. January 395 USD calls Microsoft and briefly 2026. January $ 405 Microsoft calls. The Motley fool has a disclosure policy.
Can these unstoppable shares join Microsoft, Nvidia, Apple, Amazon, Alphabet, Meta platforms and Tesla at 1 trillion in the club? initially released by The Motley Fool
