Netflix to $1 trillion

We've spent most of our time recently writing about politics and trade relations in this newsletter. We should be focusing more on company reporting. After all, we own quality stocks which should thrive regardless of current conditions.

The Wall Street Journal reported yesterday that Netflix executives are aiming to double its revenue by 2030, and hit a market capitalisation of $1 trillion. This information comes from a memo presented at their annual business review meeting last month.

They also revealed plans to accelerate their advertising business, which has been slow to take off given their large subscriber base (over 300 million homes). It's only bringing in about $1.8 billion now, just 5% of the company's total revenue.

We want to own companies that expect significant top-line growth. Netflix has a market cap of around $400 billion now, so this new stretch goal is music to our ears!

Netflix will publish its next set of quarterly results this coming Thursday night, after the market close.