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Take a seat, Netflix naysayers

Bloomberg Opinion Today
Bloomberg

Netflix Gets to Say 'I Told You So,' for Now — Tara Lachapelle

Netflix Inc. would like to thank you for attending its cash bonfires over the years but says it's time to go home now — and watch more Netflix.

The streaming-video company stunned investors by announcing that it's "very close" to becoming a true cash-flow-generating company and that it no longer needs to borrow to finance its day-to-day operations. Translation: The money-torching stage of Netflix's evolution is coming to an end as it gets closer to becoming legitimately profitable.

This revelation, which came in the release of fourth-quarter results, is significant because it would seem to firmly rebut the biggest long-standing argument against owning Netflix shares — that the business can't sustain itself.

Read the whole thing.

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This is the Weekend Edition of Bloomberg Opinion Today, a roundup of the most popular stories Bloomberg Opinion published this week based on web readership.

 

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