As Netflix Trumpets Stock Value, Debt Investors Want Cash Flow
- As company eyes junk-market return, cash flow is questioned
- ‘Sanity check’ needed amid online TV network’s growth plans
This article is for subscribers only.
Netflix Inc. is using its newly minted $100 billion market capitalization to tout a return to the junk-bond market, but debt investors may cast a skeptical eye on the online TV network.
“When will the company ever produce positive free cash flow?" Bloomberg Intelligence analyst Stephen Flynn said in an interview. "The challenge for a bondholder is your upside is not the same as it is for an equity holder.”