There's No Need To Panic About Netflix's Debt

There's No Need To Panic About Netflix's Debt

The bear argument against Netflix (NASDAQ: NFLX) is becoming familiar.

Sure, Netflix is putting up strong subscriber growth numbers, and it's the current leader in video streaming, the bears concede, but its current model is unsustainable, driven by debt and negative free cash flow. That combined with a high-flying valuation is a recipe for disaster, the bears claim. Rants about the company's cash burn are rampant on Twitter.

NFLX is a huge Ponzi-like operation that incurs massive cash burn deficits ...-https://t.co/scBNXPETPY $NFLX

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Source: Fool.com