What Will Netflix Do With Piles of Cash?

Netflix (NASDAQ: NFLX) made a very important announcement in its fourth quarter letter to shareholders. "We believe we no longer have a need to raise external financing for our day-to-day operations," management wrote in bolded and italicized type.

CFO Spence Neumann expects the company to produce breakeven free cash flow for the year, and that number ought to climb well into positive territory in 2022 and beyond. The company will pay down existing debt to a manageable level and then plans to return excess cash to shareholders through a share buyback.

But Netflix could reasonably generate over $10 billion in free cash flow every year by the middle of the decade. What will it do with its piles of cash at that point?

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Source Fool.com