Netflix's Rising Debt Levels Are Cause for Concern

Online video streamer Netflix (NASDAQ: NFLX) has never shied away from using debt to fund its growing catalog of original content, which in turn has been helping drive subscriber gains. Shares soared to fresh all-time highs today following a strong earnings report. The company added 5.2 million net additions globally in the second quarter, easily beating its own forecast of 3.2 million, and expects to add approximately 3.65 million in the third quarter.

There are a few reasons why Netflix's rising debt levels are cause for concern for investors (myself included).

Image source: Netflix.

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Source: Fool.com