- Netflix has a five-year plan to raise its market cap to $1 trillion by doubling its revenue and tripling its operating income by 2030, according to the Wall Street Journal. The streaming service also plans to boost its ad sales to $9 billion within that time. Company executives and outside investors remain confident that Netflix will succeed despite concerns of a potential recession.
Netflix says it’s setting its sights to join Apple, Microsoft, and other major Wall Street giants valued at $1 trillion within the next five years by doubling its revenue and tripling its operating profits, according to a Wall Street Journal report.
Despite concerns of a recession and President Donald Trump’s whipsaw trade policies effectively putting the stock market on a roller coaster, Netflix executives remain optimistic about the company’s projected growth prospects.
During an annual business review meeting last month, Netflix executives reportedly emphasized lofty goals for revenue, ad sales, and operating income by 2030, people in attendance told the Journal. In five years, the streaming platform plans to double last year’s $39 billion in revenue and triple its operating income to $30 billion, according to the Journal.
Additionally, the streamer aims to grow its ad sales to $9 billion within the same time frame. While Netflix does not disclose its ad sales, the company is estimated to exceed $2.15 billion this year in advertising sales, according to research firm eMarketer cited by the Journal.
Last quarter Netflix added more than 18.9 million subscribers globally; it added more than 300 million at the end of last year. The company aims to reach roughly 410 million subscribers by the end of 2030, according to a Bank of America analyst note.
“These targets underscore ample runway for continued growth driven by subscriber adds and further monetization opportunity,” BofA analyst Jessica Reif Ehrlich said in the note.
Executives plan to increase subscriptions overseas, especially in markets with high broadband penetration like India and Brazil, people who attended the business review meeting said.
Additionally, Netflix reportedly has a strong win-back curve for those users who cancel their subscriptions. In 2023, 50% of customers who canceled their subscriptions resubscribed six months later, according to data from research firm Antenna cited by Business Insider. Within a year, 61% of former subscribers were back streaming on the platform.
During Netflix’s meeting last month, prior to Trump announcing his steep reciprocal tariffs, executives acknowledged the possibility of a recession, but reportedly said streaming could be less impacted if people stay home to stream their content rather than going out to dinner or the movies.
“Amid recent market volatility, Netflix’s strong subscription model with critical entertainment (which historically has performed well in a recession) has made the stock a defensive choice for investors and driven outperformance versus other technology/Mag Seven companies,” Ehrlich said.
Netflix declined Fortune’s request for comment.
Netflix has taken steps to increase its nearly $400 billion market capitalization in recent years by mitigating account sharing, raising prices, and implementing ads. The company’s ad-supported tier, which debuted in November 2022, has picked up steam recently: 43% of U.S. customer sign-ups in February were for the ad-supported tier, growing from 40% the month prior, according to another Antenna report cited by the Journal.
“Further, Netflix’s advertising business, which is nascent, should be an incremental positive, not negative, even in a more challenging advertising backdrop,” Ehrlich said.
Netflix is slated to replace Microsoft with its own homegrown advertising technology next month, ad buyers told the Journal, the same month prime ad-selling season kicks into high gear. Netflix is expected to catch the attention of advertisers when it hosts a splashy presentation at the Perelman Performing Arts Center in New York City on May 14.
Netflix will report earnings Thursday after the market closes. Its stock soared nearly 15% as of Tuesday afternoon.
