Amid its impressive performance throughout this year, Netflix (NFLX) currently has its eyes on being the first media company. The streaming giant’s stock is up almost 100% year to date. Moreover, experts have placed their faith in the company’s chances to break new ground for media companies.
The firm has recently begun a shift toward the live sports streaming realm. That could pay off in a big way, with the company looking to regain a lot of the market share it lost to an influx of competitors emerging over the last decade. Now, some experts are predicting record performances in the coming years.
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Netflix Predicted to Reach a $1 Trillion Market Cap: But When?
There is no denying that November has been a huge month for Netflix. The media company has increased for seven straight sessions. Specifically, it is up 1.5% Thursday, reaching heights of $924. Moreover, over the past month, it has been up more than 21%, while outperforming the S&P 500 this year by almost 29%.
Amid its ongoing increases, Netflix is predicted to be the first $1 trillion media company. Specifically, MNTN CEO Mark Douglas recently discussed the potential with TheStreet. He notes that the landmark is a matter of when and not if.
When asked about Netflix’s $1 trillion potential, Douglas noted that the company should reach the mark by 2030. The first reason for that, Douglas says, is organic growth. “They continue to grow for their scale pretty rapidly,” he added.
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Additionally, he noted that the company has a “backlog of revenue every time they add a new subscriber.” Indeed, Douglas noted that the company is adding subscribers and automatically monetizing them through its advertising tier plan.
“Netflix seems to be becoming more profitable every quarter,” he added. So just stack all that up. Organic growth, backlog of revenue from all the ad support, people signing up for ad support that’s not actually really receiving ads yet. And then margin growth from both of those.”
Finally, Douglas said that “it does lead to Netflix becoming the first” to reach the market cap figure. With the recent success of the boxing match between Mike Tyson and Jake Paul and its incoming deal with the WWE, there are plenty of avenues to continue expanding its offerings. Therefore, ensuring it increases the revenue backlog Douglas referenced.