Here's Why Burning Through Cash Is Good for Netflix

Anyone who's followed the media space throughout the years knows that Netflix (NASDAQ: NFLX) spends enormous amounts of money to fund its business. While this is not unusual for fast-growing companies, at some point investors want to see positive cash flow.

This could happen sooner rather than later for Netflix, as management believes its 2019 free cash flow loss of $3 billion will be its peak annual deficit. But even if it takes longer than anticipated, investors shouldn't worry. Burning through cash was and still is a smart strategic move for the company.

Image source: Getty Images.

Source Fool.com