Netflix Volition Endure Cash-Flow Positive Yesteryear 2022, Moody’S Says

It's expert to accept goals.
That said, in that location certain are a lot of companies that non solely are non profitable, they are cash-flow negative.
$134.5 billion marketplace lay cap, upwardly $6.21/share (2.05%) too thence far today.

From Barron's Tech Trader Daily, Apr 11:

Moody’s Investors Service analyst Neil Begley this afternoon raised the firm’s rating on Netflix’s (NFLX) $6.5 billion of debt, predicting that continued growth inwards its user count volition assist the company’s leverage ratio—how much debt it maintains relative to its operating income—to drib to a to a greater extent than manageable grade inwards the adjacent 2 years, easing credit concerns.

The company’s corporate rating rises to “Ba3” from “B1,” wrote Begley, spell its probability of a default rises to “Ba2-PD” from a prior “Ba3-PD."
The company’s debt-to-Ebitda is “high” at a electrical flow 7.3 times, writes Begley, but, amongst revenue gear upwardly to ascent yesteryear to a greater extent than than 20% inwards each of the adjacent 3 years, he thinks that tin drib to “comfortably nether 5 times yesteryear 2020."

He thinks Netflix volition attain “over 200 i one m thousand subscribers” yesteryear the halt of 2021, from what the Street is estimating is a electrical flow user base of operations of 123 i one m thousand subscribers at the halt of March (per FactSet).
That ascent inwards subs volition ameliorate margins and plow the society cash-flow-positive come upwardly 2022:

We await the steady subscriber growth, together amongst gradual cost increases volition outpace the increasing investment inwards content too the upfront working upper-case missive of the alphabet spending on self-produced too owned programming, resulting inwards steadily improving margins. We believe that those margins volition bespeak to grow from the 7% hit of 2017, to the depression to mid 20% hit to generate positive cash flows. As a result, nosotros forecast the society becoming cash-flow positive inwards some 5 years....

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