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Investing.com -- Netflix Inc (NASDAQ:NFLX) executives have set a target for the streaming giant to achieve a $1 trillion market valuation by 2030. In a recent internal strategy meeting, senior leaders shared their vision to double the company’s revenue and triple its operating income by the end of the decade, according to The Wall Street Journal, citing people who attended the meeting.
The company plans to increase its annual revenue from $39 billion in the previous year to nearly $80 billion by 2030. Netflix also forecasts its global advertising revenue will grow to $9 billion, a significant rise from the $2.15 billion for the U.S. market this year estimated by eMarketer.
With an operating income goal of $30 billion, up from $10 billion in 2023, Netflix appears confident in its long-term profitability, despite current economic challenges and a competitive streaming landscape.
The platform experienced substantial growth in the fourth quarter of 2023, adding 18.9 million subscribers worldwide. This surge brought the total number of Netflix users to 301.6 million. The company’s executives are now aiming to increase this subscriber base to approximately 410 million by 2030, focusing on international markets, such as India and Brazil, for much of this expansion.
The company’s ad-supported tier, launched in late 2022, is gaining traction, accounting for 43% of February sign-ups according to Antenna, up from 40% in January. To scale its advertising business further, Netflix is replacing Microsoft’s ad tech with an in-house solution set to roll out this month.
Following the report by WSJ, Netflix shares gained 1.5% in after-hours trading, signaling investor confidence in Netflix’s goals.