Netflix aims for $1 trillion valuation, and strong earnings highlight why this ambition is achievable.

Netflix's bold plan to get to a $1 trillion market cap by 2030 is increasingly plausible after strong quarterly earnings results that cemented its status as the top global streaming service. Pivotal Research analyst Jeffrey Wlodarczak along with other analysts praised the company’s better-than-expected results and he upped his price target by $100 to $1,350 and kept a buy rating on the stock. As of FactSet, the current market cap stands at $416.2 billion and this indicates that Netflix has shown strength even when there could be a US recession.

Wlodarczak in his Friday note declared Netflix the winner of the streaming wars, pointing to the company’s latest performance as evidence. “This is what winning looks like,” he said, highlighting the company’s attractive pricing, robust subscriber engagement, and a burgeoning advertising business. The ad-supported tier was rolled out in the US on April 1, and Netflix announced it would expand internationally in Q2, while doubling down ad revenue growth by 2025. Wednesday's after-hours trading session saw the stock climb 3.4% even though the markets were closed on Friday for Good Friday.

Other analysts echoed the optimism. Jason Helfstein of Oppenheimer raised his price target to $1,200 from $1,150, while keeping his outperform rating, as he noted no uptick in subscriber churn despite recent US price hikes. "Price increases in France bolster confidence in Netflix’s resilience, even in an uncertain macro environment," he said, adding that consumers tend to watch more TV during economic downturns. BMO’s Brian Pitz also has an outperform rating on the stock and raised his target by $25 to $1,200 as he forecasts sustained ad revenue growth. He observed that entertainment is resilient and that Netflix’s ad market positioning offers insulation.

MoffettNathanson's Robert Fishman stated that there is untapped profit potential since Netflix U.S. revenue per hour viewed is lower than its engagement levels. “Even after price hikes, Netflix retains a consumer surplus, enabling further increases,” he said. The company has shown strong pricing power and subscriber retention, which helps it to succeed in a declining economy.

Risks persist, including rising content production costs and competitive pressures from rival platforms. Yet, Netflix’s scale, global reach, and strategic ad-tier rollout position it to weather challenges. The company’s guidance, which includes advertising, has been backed by the management’s confidence, and the business model is capable of adjusting to the changing consumer and market trends. As Netflix keeps on innovating and expanding, the $1 trillion goal seems not only ambitious but also attainable, backed by a winning formula in a resilient entertainment sector.