Neil Patel, The Motley Fool
4 min read
In This Article:
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There's a high-performing stock that isn't yet a trillion-dollar company but could be in the near future.
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This industry-leading internet-driven company continues to post solid growth and impressive profitability.
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Management believes a $1 trillion market cap is possible by 2030, which might be an aggressive stance.
In the past couple of decades, technology enterprises have become very influential to our society and economy. These businesses lean heavily on technology to deliver invaluable products and services to customers across the globe. The six most valuable companies are Microsoft, Nvidia, Apple, Amazon, Alphabet, and Meta Platforms (as of July 6).
It's no surprise that their stock prices have been monster winners for investors over the years. But there's one superb business that's not on this exclusive list, and its shares are up a jaw-dropping 1,270% in the past 10 years and 59,140% in the past 20 years.
Can this unstoppable stock make the leap and join those others in the $1 trillion club?
Netflix (NASDAQ: NFLX) might be left out of the so-called "Magnificent Seven," but don't let that mask how great of a business this is. Looking at those previously mentioned trillion-dollar companies, I'd argue Netflix deserves to be mentioned in the same category.
It has leveraged its data capabilities, technological infrastructure, and the wide reach of the internet and connected devices to build a global-scale media powerhouse. Perhaps no company has truly disrupted its industry and become such a dominant force in recent memory like Netflix has.
About two decades ago, early executives, most notably co-founder Reed Hastings, figured out that the internet was going to dramatically alter how people consumed video entertainment. The days of being forced to spend huge monthly fees, getting locked into unfriendly contracts, and watching shows and movies at specific times were gone. Netflix sparked the cord-cutting trend that gave households a far superior experience.
The growth has been spectacular. Netflix launched streaming roughly 18 years ago in 2007. As of Dec. 31, 2024, it had 302 million subscribers in 190 countries, and rivals are struggling to keep up.
In April, Netflix's internal goals were leaked, and it was revealed that the leadership team set a target to reach a $1 trillion market cap by 2030. As of this writing, the business is worth $528 billion. This type of outlook draws attention.
