With the AI revolution propelling the world’s largest companies to unprecedented valuations, only a select few have achieved the milestone of being valued at $1 trillion or more. Currently, there are seven publicly traded companies that hold this esteemed trillion-dollar mark:

1. Apple: $3.5 trillion
2. Nvidia: $3.4 trillion
3. Microsoft: $3.2 trillion
4. Alphabet: $2 trillion
5. Amazon: $1.9 trillion
6. Meta Platforms: $1.4 trillion
7. Taiwan Semiconductor Manufacturing: $1 trillion

In addition, Tesla and Berkshire Hathaway have briefly been in the trillion-dollar club. What all but Berkshire Hathaway have in common is their emphasis on advancing artificial intelligence (AI).

But while AI remains a dominant growth driver for tech giants, could we see another type of company cross this trillion-dollar threshold? At Pristine Gaze, we see Netflix as a potential trailblazer that could break into the trillion-dollar club without AI as a primary business driver.

Netflix: The Reigning Giant in Streaming

As competition has intensified in the streaming world, consumers have a vast array of platforms to choose from, often juggling multiple subscriptions. According to research by EY, the typical streaming household now subscribes to five platforms, though many end up canceling services due to underuse. This fragmented market highlights the strength of Netflix, which remains far ahead in terms of scale with 283 million subscribers worldwide.

Netflix has built this subscriber base on a solid foundation of original content alongside well-loved film and TV franchises. But the company is also moving toward new growth opportunities, which could drive it closer to a trillion-dollar valuation.

Promising New Revenue Streams

1. Ad-Supported Tier Growth: Netflix’s lower-cost, ad-supported plan is showing promise. During the third quarter, Netflix reported a 35% increase in membership for this plan year over year. While management has clarified that advertising isn’t expected to drive major revenue growth in 2025, even a modest impact could enhance its overall financial outlook, with revenue already growing at 15% annually.

2. Netflix House: A unique initiative, Netflix House offers an immersive experience for fans, allowing them to interact with Netflix’s iconic shows in real life. Similar to Disney’s ventures into theme parks, Netflix House could enhance brand loyalty, drawing in new subscribers while increasing engagement among existing fans.

A Path Toward a Trillion-Dollar Valuation

For 2024, Netflix projects a total revenue of about $38.8 billion, with an expected increase to around $43–$44 billion in 2025. If Netflix can sustain an 11% annual growth rate over the next decade, its revenue could reach $96 billion by 2033. Using its current price-to-sales (P/S) ratio of 8.8, Netflix would attain a market cap of approximately $847 billion.

While this forecast falls short of $1 trillion, the company’s untapped potential in areas like advertising and immersive experiences could push it toward accelerated growth in both revenue and profitability. Enhanced customer retention, combined with improved margins from these new ventures, could eventually position Netflix as a trillion-dollar company.

The Bottom Line

With its commanding global subscriber base, promising growth initiatives, and a firm hold on the streaming space, Netflix is poised for future gains. Though it isn’t an AI-driven giant, its strategic innovations and high market appeal could lead to significant valuation expansion in the years ahead.