Netflix Isn't In Any Hurry to Expand Profits
Netflix's (NASDAQ: NFLX) new co-CEO, Ted Sarandos, might feel a little weird these days. The video-streaming pioneer is producing hundreds of millions in positive free cash flow after its second straight quarter in the black. What's the head of content to do with pockets full of cash during a pandemic?
Netflix previously hadn't produced two consecutive quarters of positive free cash flow since 2014. Now it's expecting break-even cash flow or better for 2020.
That won't last, though. Sarandos and the rest of the Netflix team are eager to ramp up production again, and CFO Spence Neumann expects free cash flow to dip back into negative territory again next year. And despite operating margin expanding to 22% last quarter, Neumann still expects to manage the company to a 16% margin for 2020 and 19% in 2021.
Source Fool.com
