Why Netflix Stock Barreled Higher on Tuesday

Shares of Netflix (NASDAQ: NFLX) charged sharply higher on Tuesday, surging as much as 6.7%. As of 2:49 p.m. ET, the stock was still up 5.5%.

The catalyst that propelled the streaming pioneer higher was a report that suggested the company has its sights set on impressive growth over the next five years.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Robust growth ahead?

Netflix, which has already been one of the stock market's star performers over the past couple of years, has ambitious goals for the future. The company generated revenue of $39 billion in 2024 but has plans to double its top line to $78 billion by 2030, according to a report in The Wall Street Journal.

Management announced a multipronged plan to achieve this goal. Netflix is working to boost subscriptions in the company's overseas markets, with an emphasis on areas with high broadband penetration, including Brazil and India, among others. Netflix closed out last year with more than 301 million subscribers and plans to reach 410 million by the end of the decade.

The company also wants to generate $9 billion in ad sales over the coming five years. Netflix previously announced that its ad-supported tier had reached 70 million users. In the fourth quarter, signups for that plan increased 30% quarter over quarter and represented 55% of new subscribers in the countries where advertising is shown.

Perhaps most ambitiously, management has a goal of tripling Netflix's operating income by 2030, to more than $31 billion, up from $10.4 billion in 2024.

Joining the $1 trillion club

Netflix currently has a market cap of roughly $419 billion (as of this writing) but wants to achieve a market cap of $1 trillion by 2030. The company currently sports a price-to-sales (P/S) ratio of roughly 11. If its P/S remains constant and Netflix achieves its lofty top- and bottom-line growth goals, membership in the $1 trillion club is clearly within its grasp.

Of course, a lot of things will have to go right for Netflix to reach this benchmark, but given the company's track record of performance, it certainly seems like an attainable goal.

Should you invest $1,000 in Netflix right now?

Before you buy stock in Netflix, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $502,231!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $678,552!*

Now, it’s worth noting Stock Advisor’s total average return is 800% — a market-crushing outperformance compared to 156% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 14, 2025

Danny Vena has positions in Netflix. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.