Over the past two decades, the stock market has had a huge race. This rear wind was the perfect recipe for the creation of many billions of dollars companies. These companies are in an elite category.
Investors are certainly experiencing a smaller innovative enterprise in the point of industry which currently has a market capitalization of $ 384 billion (March 13). He quickly climbed the ranks. And I believe that it deserves to be mentioned as a new potential participant of the billions of dollars club at some point in the future.
Can he join an unstoppable stock Apple,, Microsoft,, Nvidia,, Amazon,, AlphabetAnd Meta-platforms In the club of $ 1 Billion by 2035?
If this is not already the case, Netflix(Nasdaq: nflx) should be on investor radars. His actions have catapulted 66,600% more in the past 20 years, which undoubtedly makes them one of the best performers during this period.
This monumental increase only occurred because Netflix has completely disrupted the traditional media market. The company deserves the merit of having created the streaming industry as we know it today.
He focused on innovation to find a way to provide customers with a better experience compared to cable television. Consequently, Netflix should surely be discussed in the same breath as these other technological titans.
The growth of the company was incredible. Five years ago, he had 167 million customers. Today, this figure has climbed to 302 million, with a presence in 190 countries. Revenues also skyrocketed, going from $ 20 billion in 2019 to $ 39 billion last year.
Even at its current size, the company is trying new things to maintain growth. Netflix repressed housewife sharing households. It has introduced a cheaper level of advertising to target a customer sensitive to prices. And it starts to get more involved in live events and sports.
Netflix’s profitability is remarkable. The enormous scale of the company, which comes from its advantage of first furniture, puts it ahead of its competitors in the industry.
In 2025, managers targeted an operating room of 29%, available cash flows should total $ 8 billion. These figures would represent an improvement compared to the previous year.
Netflix has also proven that it has a pricing power. The management team strives to continue to add more value for subscribers, providing the confidence necessary to occasionally increase prices.
The market capitalization must only increase by 160% to reach $ 1 billion in 10 years. Over the past decade, Netflix market capitalization has climbed 1,320%. Waiting for a slowdown is reasonable, in my opinion.
The evaluation is also important. The stock is currently negotiating at a Price to profits ratio (p / e) of 45.3. Suppose that multiple contracts at 25 by 2035, which is not out of the question since the Netflix mature phase will then be done. The profit by action (BPA) will have to grow by 16.7% per year to reach a market capitalization of $ 1 Billion.
Again, EPS has increased to a much faster clip in the last decade. So it is not crazy to believe that on the basis of its trajectory, the company will enter the club of $ 1 Billion in 10 years.
Netflix could be on a clear path to the billions of dollars. However, investors should not take this as a sign that action is an automatic purchase. The evaluation, at this p / e of 45.3, seems too steep. This is true even with the actions merging 15% reduction on their summit of all time from February.
No one will discuss the fact that their belongings are doing extremely well. But this reality is fully reflected in the evaluation, which, I think, gives investors a safety margin. Netflix must exceed the already high expectations integrated in the course of action for investors to end up with a satisfactory result. Therefore, the best action plan is to wait for a much better assessment before buying.
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John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of Motley Fool’s. Randi Zuckerberg, former Director of Development of the Facebook and Sister of the CEO of Meta Platforms, Mark Zuckerberg, is a member of the board of directors of Motley Fool’s. Suzanne Frey, director of Alphabet, is a member of the board of directors of Motley Fool’s. Neil Patel And its customers have no position in the actions mentioned. The Motley Fool has positions and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix and Nvidia. The Motley Fool recommends the following options: Long January 2026 Calls $ 395 on Microsoft and Court January 2026 405 $ calls Microsoft. The Word’s madman has a Disclosure policy.
