Netflix Proved 2 Important Points in 2020
Video-streaming veteran Netflix (NASDAQ: NFLX) has come a long way from its beginnings in the DVD rental space, but the company still has a lot to prove. The stock is valued like a high-growth investment, changing hands for 90 times trailing earnings and 364 times free cash flows. These lofty ratios can't last forever. Shares are trading at these nosebleed-inducing prices after a 64% gain in 2020, and investors are asking for proof that Netflix can live up to its enormous promises.
Well, Netflix really did give investors some of that long-awaited evidence this year. Let me show you what I mean.
Image source: Netflix.
Source Fool.com
