How Netflix Will Improve Free Cash Flow by $800 Million in 2020
Netflix (NASDAQ: NFLX) has officially reached peak cash burn. Its negative free cash flow of $3.3 billion in 2019 was about $250 million more than the previous year, but management is expecting to burn just $2.5 billion this year.
That's despite the fact that several high-profile competitors are entering the market in 2020, and the price of licensing and producing new television series and films has seemingly never been higher.
There are several factors that will lead to the considerable improvement in cash flow this year, and investors should expect those trends to continue for the foreseeable future. That provides a clear path to neutral cash flow for the streaming video leader. Here's how it'll get there.
Source Fool.com
