Netflix Might Be Done Borrowing Cash
The days of Netflix (NASDAQ: NFLX) borrowing billions of dollars or euros to fund its massive content spending are coming to an end. "Our need for external financing is diminishing," management wrote at the conclusion of its third-quarter letter to shareholders. Not only is the company forecasting $2 billion in positive free cash flow this year -- due mostly to content production suspensions -- it thinks it could potentially reach break-even cash flow in 2021.
Image source: Netflix.
Netflix expects free cash flow to range between -$1 billion and break-even in 2021, with continued improvement in 2022 and beyond. There are a combination of factors leading to improved cash flow at Netflix.
Source Fool.com
