Several companies are surpassing a $1 trillion market capitalization. One stock that could reach the milestone in the next decade is Netflix (NFLX 0.92%).
In this segment from "The Five," recorded on Dec. 14, Fool.com contributor Parkev Tatevosian discusses why -- after shunning the easy choice, Meta Platforms (META 0.73%), parent of Facebook -- the streaming media giant could reach a $1 trillion market cap.
Parkev Tatevosian: OK, I get to go first this time. All right. I was going to pick Facebook, but their market cap was $950 billion, so I thought that was a little bit gaming the game there. So I switched it up and I went, the one company I think could reach a market cap of $1 trillion by 2030 is Netflix. It currently has a market cap of $260 billion. It expanded to 214 million subscribers. That surged during the pandemic, but impressively, it's still growing during reopening at a nice pace. Management has estimated there's 1 billion broadband households worldwide. Plus they're expanding into mobile gaming. So There suggests some room for growth in new customers and increasing average revenue per customer.
Right now they are on a $30 billion annual run rate in revenue. That leaves a big budget for content they can create or buy to keep spinning that flywheel and making it tough for competitors. My pick is Netflix for $1 trillion in market cap by 2030.
