Netflix (NFLX) Won't Have a Very Hard Time Getting to $1 Trillion Market Cap, Former Media Executive Says

After Netflix (NFLX) stated that it is seeking to drive its market capitalization to $1 trillion by 2030, Tom Rogers, the former president of NBC's cable business, told CNBC that NFLX's goal is realistic.

The company's current market capitalization is $465 billion.

Netflix's Path to a $1 Trillion Market Cap

To reach its goal, Netflix will need to add 100 million more subscribers between the end of Q1 and 2030. That equates to 20 million net new subscribers per year, and the company added nearly 20 million net new subscribers in just Q4 of last year, Rogers noted.

Its ad business "will have to take off," but that should not be a problem, as 45%-50% of its new subscribers are opting to receive ads, the former media executive said. Also importantly, the ad revenue carries very high margins, Rogers noted.

All in all, the company's profits will probably triple between 2024 and 2030.

And with the stock market, based on historical patterns, likely to rise 70% between now and 2030, NFLX should not have much trouble rising 100% from its recent highs. such a gain, in turn, would propel the firm's market cap to $1 trillion, Rogers stated.

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Disclosure: None. This article is originally published at Insider Monkey.