Netflix had a “free cash flow” (FCF) of negative $524 million in Q4, which brought the total for 2017 to negative $2 billion.....For 2018, Netflix expects to burn $3 billion to $4 billion in cash, it said. This is not exactly a propitious trend.....A company that has been publicly traded for 15 years should have figured out by now how to be cash-flow positive. But no way. That’s not the goal. The goal is to create new content no matter what the costs, and borrow the money to do it, and hope that revenues will eventually catch up. That’s what it said:
David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.