The stock market is on track to end 2024 on a high note, with select equities likely to see further upside in the coming year.
To this end, these stocks will potentially attract more capital inflow with targets such as the $500 billion market capitalization in sight.
Indeed, there are expectations of a stock market rally in the coming year, driven by anticipated friendly policies from the upcoming Donald Trump administration.
Picks for you
In this case, below are two stocks likely to rally and hit the $500 billion market cap in 2025.
Netflix (NASDAQ: NFLX)
The streaming giant has had an impressive run in 2024, primarily driven by its investments in initiatives such as original programming and strong brand loyalty. As the company focuses on growing its subscriber base, it has invested heavily in these initiatives.
At the same time, Netflix (NASDAQ: NFLX)is expanding into areas such as live streaming and local-language content, positioning itself to remain the dominant player in its field.
As 2024 closes, Netflix remains in the spotlight. The company has a history of performing well in December and January. The stock has gained significantly and has been bolstered by market optimism following Trump’s re-election.
Notably, Netflix hit a major milestone, with its ad-supported tier reaching 70 million monthly active users just two years after its launch.
NFLX has rallied 87% year-to-date, trading at $877 as of press time with a market cap of $382 billion. The stock requires an additional 30% upside to hit $500 billion.
Several Wall Street analysts have also issued bullish projections for the stock. According to a Finbold report, Maria Ripps, a senior internet analyst at Canaccord Genuity, raised her price target for Netflix to $940 from $760 while maintaining a ‘Hold’ rating.
The revision reflects expectations of artificial intelligence (AI) deregulation, favorable corporate acquisitions, and lower taxes following the election results.
Similarly, Mark Mahaney of Evercore ISI raised his price target to $950 from $775, reiterating an ‘Outperform’ rating. His optimistic outlook is based on surveys in key markets like the U.S., France, and Germany, with additional growth potential if Netflix resumes its historical price hikes.
Mastercard (NYSE: MA)
The payment giant is another strong contender to reach the $500 billion market capitalization mark, having achieved impressive growth in 2024 and trading at new all-time highs.
Mastercard (NYSE: MA) demonstrates significant growth potential thanks to its asset-light business model, powerful network effects, and strong financial position.
Unlike traditional credit card issuers, Mastercard earns a fee from every transaction, with 63% of its revenue derived from payment processing.
Its global network of 3.4 billion cards and 150 million merchants creates a valuable and hard-to-replicate ecosystem, making it a strong candidate for a price surge.
As of this report, Mastercard is trading at $526.98, having gained nearly 25% year to date. The company boasts a market cap of $485 billion, requiring a 3% upside to secure the $500 billion milestone.
Overall, Netflix and Mastercard possess strong fundamentals that could drive their stocks to a $500 billion market cap by 2025. However, they remain vulnerable to broader market sentiment, which could influence their trajectories.
Featured image via Shutterstock
