As of this writing, there are 11 companies that carry a market capitalization of at least $1 trillion. Investors who got in on these businesses early on certainly benefited from huge portfolio gains. This might push you to try and identify potential new entrants to the 13-figure club in the future.

There’s one industry-leading enterprise known for its innovative culture and success at disrupting an entire industry — and it’s currently worth about $500 billion. Its shares have been a monster winner, rising 1,250% just in the past decade.

Can this unstoppable stock join the coveted $1 trillion club by 2035? Here’s what investors need to know.

Becoming a thriving business on a global stage

The dominant company that could be on its way to a trillion-dollar valuation is Netflix (NFLX -0.14%). It deserves credit for introducing the world to streaming video entertainment, completely upending the traditional cable TV industry. Becoming a leader in the internet age definitely allows Netflix to be placed in the same category as businesses worth more than $1 trillion.

Netflix’s growth has been impressive. Between 2014 and 2024, revenue increased at a compound annual rate of 21.6%. That top-line figure was up 12.5% in the first quarter. This was propelled, unsurprisingly, by quickly adding new members across the globe.

Previously unthinkable strategic pivots are now normal. Netflix has a presence in video games, and it’s getting more involved in showing live events on the platform. What’s more, the leadership team has found success by clamping down on password sharing. The cheaper, ad-based tier is also very popular, bringing in price-sensitive viewers.

These days, Netflix is a scaled media company that generates huge profits despite plans to spend $18 billion in cash on content just this year. Having a massive revenue and user base supports strong unit economics. The result is significant earnings and free cash flow generation.

The growth could continue for the foreseeable future. “We’re less than 50% penetrated into connected households,” CFO Spencer Neumann said on the Q4 2024 earnings call.

Looking at a realistic scenario

As mentioned, Netflix currently carries a market cap of about $500 billion. So, to see this figure reach $1 trillion in a decade, it would need to expand by 100% or roughly 7% per year. In the past 10 years, the market cap has climbed by a whopping 1,250%. Investors would expect a notable slowdown to occur, which I think is a reasonable way to view things.

Changes in the valuation can have a profound impact as well. Netflix shares trade at a price-to-earnings (P/E) ratio of 56.5, boosted by their incredible past performance. This is expensive, in my view. However, if we assume that the P/E multiple gets cut in half to 28 in 10 years, earnings per share (EPS) would need to grow at a compound annual rate of 15% between now and 2035 for the company to enter the $1 trillion club.

For what it’s worth, Netflix’s EPS has increased at a much faster clip in the previous decade. Taking all things into account, it’s very easy to believe the market cap will get to a 13-figure number in 10 years.

Should you buy the stock now?

It can certainly be exciting to own a stock that becomes a trillion-dollar enterprise. This usually means there are big returns on tap.

However, in this case, I believe investors should think twice before adding Netflix to their portfolios. Again, the valuation comes into play. At a P/E ratio that’s approaching 60, I think there is zero margin of safety for prospective buyers. In other words, Netflix must execute flawlessly with no hiccups for investors to maybe have the chance to achieve adequate returns.

It’s best to practice patience for now.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.

U.S. stock futures pointed higher on Sunday evening as Wall Street looks ahead to a big week for the U.S.-China trade war, corporate earnings, and economic data.

The past year has not been kind to the shares of ConocoPhillips (COP -1.08%). The share price has fallen around 22% or so, which is twice the drop of the broader energy sector, using Energy Select SPDR ETF (XLE -1.21%) as an industry proxy. That divergence might lead some investors to wonder what’s wrong with ConocoPhillips right now. The answer is that the stock and business aren’t the same thing.

What does ConocoPhillips do?

ConocoPhillips is what is known as an independent energy producer. Essentially, all it does is drill for oil and natural gas. This means it operates in the upstream of the broader energy sector. Energy prices are highly volatile and often move very quickly because of geopolitical news and supply/demand changes. That can lead to swift swings in the sales and earnings of companies like ConocoPhillips.

That’s the big story today, with energy prices hitting a bit of a weak patch after soaring coming out of the height of the coronavirus pandemic. Simply put, ConocoPhillips’ income statement results are a bit weak right now. The company’s adjusted earnings per share tallied up to $1.42 in the second quarter of 2025 versus $1.98 in the same quarter of 2024. In some ways, it makes sense that investors are downbeat on the stock.

However, it is important to note that this type of earnings volatility is perfectly normal for ConocoPhillips’ business. It is just how the energy industry works. To highlight that, the company’s realized price per barrel of oil equivalent (BOE) in the second quarter of 2025 was 19% lower than it was in the second quarter of 2024. That was almost entirely out of the company’s control (hedging can sometimes soften the impact of commodity price swings).

Data by YCharts.

ConocoPhillips is executing well as a business

To be fair, ConocoPhillips is not a stock that a conservative investor will probably want to buy. A better option in the energy patch would be a pipeline operator like Enterprise Products Partners, which is a toll-taker paid to move oil and natural gas. With revenue and earnings tied to energy prices, only more aggressive types will want to buy ConocoPhillips.

And ConocoPhillips happens to be a fairly well-run business. The best example of that is the company’s dividend history. While the dividend has gone up and down over time, the company has paid a dividend consistently for decades. That speaks to a business that is being operated at a high level despite the fact that its top and bottom lines can be volatile at times.

More specific to today, ConocoPhillips is seeing some notable operating success that is being overshadowed by energy price moves. For example, ConocoPhillips completed its acquisition of Marathon Oil in late 2024, expanding its business. The integration effort has been outdistancing the company’s own expectations. There was a 25% uplift in the new resources added versus projections. A 100% increase in cost synergies over expectations. And the company has been able to ink 25% more asset sales than projected, and more quickly than forecast, as ConocoPhillips looks to use the deal to refocus around its best assets.

Basically, ConocoPhillips is doing a pretty good job right now. In fact, despite the revenue and earnings hit caused by lower energy prices, the company actually increased production 3% year over year in the second quarter of 2025.

ConocoPhillips could be a good way to get direct energy exposure

All in, ConocoPhillips as a business is doing just fine. When oil prices recover, as they always have before, it will likely be in a better position to benefit than it was a year ago. The stock, however, is a different story, since investors are focusing on revenue and earnings, which are inherently volatile and relatively weak at the moment. That’s what’s wrong with the stock, even though there’s really nothing wrong with the business. If you are looking for energy exposure, however, ConocoPhillips’ business could make it an interesting stock to dig into.

On October 14, 2025, CCLA Investment Management disclosed a new position in Booking Holdings (BKNG -2.31%), acquiring 22,166 shares valued at an estimated $119.52 million as of September 30, 2025.

What Happened

According to a filing with the Securities and Exchange Commission dated October 14, 2025, CCLA Investment Management disclosed a new stake in Booking Holdings. The fund acquired approximately 22,166 shares during the third quarter of 2025, with an estimated total value of $119.52 million based on average prices for the quarter ending September 30, 2025.

What Else to Know

This was a new position for CCLA Investment Management, representing 1.9% of the fund’s $6.25 billion in reportable U.S. equity AUM as of September 30, 2025, which places it outside the fund’s top five holdings.

Top five fund holdings after the filing:

• NASDAQ: MSFT: $369.63 million (5.9% of AUM as of September 30, 2025)
• NASDAQ: GOOGL: $345.87 million (5.5% of AUM as of September 30, 2025)
• NASDAQ: AMZN: $268.96 million (4.3% of AUM as of September 30, 2025)
• NASDAQ: AVGO: $207.92 million (3.3% of AUM as of September 30, 2025)
• NYSE: V: $180.65 million (2.9% of AUM as of September 30, 2025)

As of October 13, 2025, shares of Booking Holdings were priced at $5,253.85, reflecting a one-year total return of 22.2%.

Company Overview

Company Snapshot

Booking Holdings operates online travel and restaurant reservation platforms, including Booking.com, Priceline, Agoda, KAYAK, Rentalcars.com, and OpenTable.

Its business model centers on connecting global consumers with accommodation, transportation, and dining options, as well as providing travel service providers and restaurants with online reach.

The company serves a broad international customer base, leveraging technology and a portfolio of brands to drive demand across multiple geographies and segments.

Booking Holdings is a leading global provider of online travel and restaurant reservation services. Its scale and diversified offerings contribute to a resilient business model.

Foolish Take

CCLA, a London-based investment manager, took a large new position in Booking Holdings stock worth nearly $120 million during the quarter ending on September 30, 2025. There are a few reasons why this is an institutional move that is worth noting for average investors.

First, Booking Holdings stock has been a consistent outperformer. Over the last five years, shares have advanced by 209%, equating to a compound annual growth rate (CAGR) of 25%. That compares quite favorably to the S&P 500, which has generated a 105% total return, or CAGR of 15%, over the same period.

Second, Booking’s key fundamentals remain strong. Total revenue over the last 12 months stands at $25 billion, up nearly 5x from its five-year low of $5.5 billion in 2021. Additionally, net income has skyrocketed, rising from $59 million in 2021 to $4.8 billion.

In short, the travel industry — and Booking Holdings in particular — are firing on all cylinders. The stock’s impressive returns are backed by equally impressive fundamentals — meaning that growth-seeking investors would be wise to keep an eye on this long-term outperforming stock.

Glossary

Position: The amount of a particular security or asset held by an investor or fund.

Assets under management (AUM): The total market value of investments managed by a fund or investment firm.

Reportable U.S. equity assets: U.S. stocks that a fund is required to disclose in regulatory filings.

Alpha: A measure of an investment’s performance compared to a benchmark, indicating value added by active management.

Total return: The investment’s price change plus all dividends and distributions, assuming those payouts are reinvested.

Filing: An official document submitted to a regulatory authority, such as the Securities and Exchange Commission (SEC), disclosing financial or investment information.

Quarterly average price: The average market price of a security over a specific quarter.

TTM: The 12-month period ending with the most recent quarterly report.

Stake: The ownership interest or investment held in a company by an individual or institution.

Top five holdings: The five largest investments in a fund’s portfolio, ranked by market value.

Jake Lerch has positions in Alphabet, Amazon, and Visa. The Motley Fool has positions in and recommends Alphabet, Amazon, Booking Holdings, Microsoft, and Visa. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

On Sunday, President Donald Trump sought to calm nerves in a post on Truth Social, following his announcement on Friday that he will impose an additional 100% tariff on China and limit U.S. exports of software. 

“Don’t worry about China, it will all be fine!” he wrote. “Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”

Meanwhile, Vice President JD Vance told Fox News’s Sunday Morning Futures that the U.S. is willing to be reasonable if China is too, though he insisted Trump has the upper hand with “far more cards” than Beijing holds.

The shift in tone contrasts with Trump’s fiery rhetoric on Friday as he lashed out at China for its new export controls on rare earths, which are critical inputs across a range of industries.

“Market participants appear to be leaning into the TACO trade once more, fueled not only by what we’ve seen in the recent past, but also by conciliatory remarks over the weekend from both President Trump and Vice President Vance, suggesting that Friday’s announcement of additional 100% tariffs on Chinese imports are likely to be little more than a negotiating tactic,” Michael Brown, senior research strategist at Pepperstone, said in a note on Sunday.

Futures tied to the Dow Jones Industrial Average surged 382 points, or 0.84%. S&P 500 futures were up 1.27%, and Nasdaq futures jumped 1.79%.

The yield on the 10-year Treasury tumbled 8.9 basis points to 4.059%. The U.S. dollar was up 0.04% against the euro and up 0.48% against the yen. Gold climbed 1.43% to a new high of $4,057.50 per ounce. U.S. oil futures rose 1.29% to $59.66 a barrel, and Brent crude gained 1.32% to $63.56.

Trump had previously imposed 145% tariffs on China, then put them on hold to allow negotiations to play out. A similar pattern played out with other trade partners like the European Union, causing Wall Street to dismiss maximalist threats with the TACO (Trump always chickens out) trade.

Brown said Trump’s new China tariff, which would go into effect Nov. 1 and bring the overall level to 130%, appears to be another example of his “escalate to de-escalate” strategy.

“Assuming that this is another ‘TACO’ situation, and some clarity on that front is obtained before too long, then this is likely to prove another dip in equities that should be viewed as a buying opportunity, with the path of least resistance continuing to lead higher, if in somewhat choppy fashion,” he added.

At the same time, the Federal Reserve’s shift back to rate cuts amid still-solid economic growth should continue to boost to the dollar, which will likely shrug off tariff threats, Brown predicted.

Similarly, market veteran Ed Yardeni, president of Yardeni Research, also sees the U.S. and China pulling back from the precipice.

“If neither side were to blink, the US and Chinese economies would lead the global economy into a deep recession, if not a depression,” he wrote in a note on Sunday. “But we expect that both sides will blink very soon given the extremely adverse consequences of a trade war between the world’s two biggest economies.”

For its part, Beijing remained defiant, with the commerce ministry saying Sunday that China doesn’t want a tariff war but is also not afraid of one. It also said the export controls are not a ban on rare earth shipments but are a sovereign right.

But China’s new rare earth export policy ups the ante well beyond another tit-for-tat exchange in the trade war against the U.S.

Dean Ball, who served as a senior advisor in the White House Office of Science and Technology Policy earlier this year, wrote on X on Saturday that the policy gives Beijing the power to “forbid any country on Earth from participating in the modern economy.”

Dali Yang, a political science professor at the University of Chicago, sounded a similar alarm in a post on Sunday, saying the move marks a decisive moment that reveals what a China-led order might look like.

Looking beyond rare earths, it’s one that leverages control over strategic materials and technologies to prop up global influence.

“China is effectively saying: ‘We control the arteries of high-tech civilization.’ The rest of the world now sees that message clearly—and is scrambling to build new circulatory systems,” Yang wrote.

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Destiny Wealth Partners reported in an SEC filing on Monday that it sold 59,354 shares of the iShares Biotechnology ETF (IBB) in the third quarter—an estimated $8.1 million transaction based on average pricing for the quarter.

What happened

According to a filing with the Securities and Exchange Commission on Monday, Destiny Wealth Partners reduced its holding in the iShares Biotechnology ETF (IBB) by 59,354 shares during the quarter. The estimated value of the shares sold was $8.1 million. The fund now holds 16,430 IBB shares valued at $2.4 million as of September 30.

What else to know

This sale left IBB representing 0.3% of Destiny Wealth Partners’ 13F reportable assets.

Top holdings after the filing:

• JAAA: $46.41 million (5.7% of AUM)
• VUG: $40.11 million (4.9% of AUM)
• DFLV: $32.03 million (3.9% of AUM)
• JCPB: $28.13 million (3.45% of AUM)
• AMZN: $27.70 million (3.4% of AUM)

As of Tuesday afternoon, IBB shares were priced at $149.73. The fund is up about 5% over the year.

Company overview

Company snapshot

• IBB seeks to track the investment results of a biotechnology-focused equity index, investing at least 80% of assets in component securities and economically similar investments.
• It operates as a non-diversified ETF, with periodic rebalancing to maintain index alignment.

The iShares Biotechnology ETF (IBB) offers investors access to the U.S. biotechnology sector through a passively managed fund. With over $6 billion in market capitalization, the ETF provides exposure to biotechnology companies.

Foolish take

Destiny Wealth Partners’ decision to unload roughly $8.1 million in iShares Biotechnology ETF (IBB) shares adds to a broader theme in markets this year: Institutional investors have been cooling on biotech. The sector has struggled to regain its pandemic-era momentum as investors favor AI, energy, and industrial plays. IBB is up about 5% over the past year, trailing the S&P 500’s 18% gain.

IBB’s two largest holdings—Vertex Pharmaceuticals and Amgen—have each slumped, down about 8% and 7%, respectively, over the past year. That drag has offset strength from smaller, high-growth biotech names focused on oncology and gene therapy. Meanwhile, the fund’s expense ratio of 0.44% sits slightly above broad-market ETF averages, reflecting the niche exposure investors are paying for.

For long-term investors, IBB still offers diversified exposure to the innovation pipeline driving future drug breakthroughs—but near-term returns will depend on FDA approvals, pricing clarity, and investor appetite for higher-risk growth sectors.

Glossary

ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.

Biotechnology ETF: An ETF focused on companies in the biotechnology industry, such as drug development and medical research.

AUM (Assets Under Management): The total market value of assets that an investment manager or fund controls on behalf of clients.

13F reportable AUM: The portion of a fund’s assets that must be disclosed in quarterly SEC Form 13F filings, typically U.S. equity holdings.

Non-diversified ETF: A fund that invests in fewer securities or sectors, increasing exposure to specific industries or companies.

Index-based selection: An investment strategy where holdings are chosen to match a specific market index, rather than by active management.

Component securities: The individual stocks or assets that make up an index or ETF portfolio.

Dividend yield: The annual dividend income expressed as a percentage of the investment’s current price.

Total return: The investment’s price change plus all dividends and distributions, assuming those payouts are reinvested.

Rebalancing: Adjusting a fund’s holdings periodically to maintain alignment with its target index or asset allocation.

Shares of Carnival (CCL 1.90%), the world’s largest cruise line, were pulling back on Monday after a strong earnings report. Carnival delivered another quarter of record results during its third quarter, the seasonally strongest period of the year.

Revenue in the quarter rose 3.3% to $8.15 billion, which edged out estimates at $8.11 billion. Net yields, or prices, hit an all-time high over the last four quarters, which helped the company deliver strong margin expansion. Adjusted net income improved from $1.75 billion to $1.98 billion, or $1.43 per share, which was better than the consensus at $1.32.

Carnival also raised its guidance, reflecting improved net yields and effective cost management. It’s now calling for adjusted net income to rise 55% for the year to $2.95 billion, or $2.14 a share. Additionally, it sees net yields up 5.3%, compared to a 3.3% increase in adjusted costs, and it expects a 15% increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to $7.05 billion.

Despite the strong results, Carnival stock fell on the news. It closed Monday’s session down 4%, despite an initial spike on the news. The reason for the decline wasn’t clear. Investors might have expected better results, or they think enough optimism is baked into the stock, as shares were running higher before the report came out.

Carnival stock is now down 10.4% from its peak just a month ago, and the pullback sets up an attractive buy-the-dip opportunity. Here are three reasons why.

1. Booking trends remain strong

Despite concerns about an economic slowdown in the U.S., Carnival continues to see strong booking trends going forward, a sign that demand for its cruises continues to grow. It reported record customer deposits for the quarter at $7.1 billion, and management said that booking trends strengthened through the quarter and are higher than a year ago.

Nearly half of 2026 is booked at historical high prices for both the U.S. and Europe, and the company said it had record booking volumes for 2027.

Celebration Key, its new private island in the Caribbean, is off to a great start. Management said that the new island has received reviews, and returns on the investment are meeting expectations. Momentum for the business is clearly robust, and management expects Celebration Key to be a major demand driver.

2. Interest rates are coming down

Operationally, Carnival is doing phenomenally, but the stock is still weighed down by the massive debt load it took on to stay afloat during the pandemic shutdowns.

It continues to pay off that debt, and finished the fourth quarter with $26.5 billion, down more than $1 billion from the beginning of the fiscal year. It also refinanced $4.5 billion in debt during the quarter, helping to lower its interest expense, which fell from $431 million in the quarter a year ago to $317 million.

The Federal Reserve cut the benchmark Fed funds rate by 25 basis points earlier in September, and expects to make two more similar cuts over the rest of the year. That should allow Carnival more opportunities to lower its average interest rate, especially given the strength of the business. By cutting interest expense, it can grow net income even without an increase in operating profit.

3. The stock is still a good value

Carnival has been a winner since the pandemic, largely because of its execution and growth, but also because the stock offers a good value. Based on the adjusted earnings per share forecast of $2.17 for this year, it now trades at a forward price-to-earnings (P/E) of just 13.5.

Cruise stocks can be risky, due to their vulnerability to black swan events like the pandemic, or even economic downturns. But Carnival’s recent results give investors good reason to expect smooth sailing ahead. Demand trends look great. It’s steadily reducing its debt burden, and investments like Celebration Key should pay off over the long term.

The recent pullback looks like a great opportunity for Carnival stock.