Wint Htet

Finance 2209

[Wint Htet @Spring19NFLXCFO]

NFLX gathered 112 Emmy nominations last year. Events like this have kept investors hopeful that NFLX debt financing will "create growth" in the short term. @ProfLowell #fin2209

[Wint Htet @Spring19NFLXCFO]

At the current liabilities level of US$5.47b, NFLX has been able to pay short-term liabilities with current assets of US$7.67b, and a current ratio of 1.4x. @ProfLowell #fin2209

[Wint Htet @Spring19NFLXCFO]

With NFLX’s recent rise in debt, the company currently has US$2.82b remaining in cash and short-term investments for investing into the business. #fin2209 @ProfLowell

[Wint Htet @Spring19NFLXCFO]

NFLX long-term debt reached $8.34 billion- it needs to continue to invest in original programming in order to remain competitive, especially when others like @apple are encroaching into streaming territory. @ProfLowell #FIN2209

[Wint Htet @Spring19NFLXCFO]

Funds for new content were raised in the form of senior unsecured notes. This recent debt offering is the 6th time in four years that Netflix is raising $1 billion or more through bonds @ProfLowell #FIN2209

[Wint Htet @Spring19NFLXCFO]

NFLX committed to raising $2 billion to help fund content acquisitions, production, capex, investments, working capital and other strategic transactions. @ProfLowell #FIN2209

[Wint Htet @Spring19NFLXCFO]

Despite rising profits, NFLX has (-) FCF and is accumulating more debt with the goal of producing high quality content. In 2018 NFLX spent more than $13 billion on new content assets. @ProfLowell #FIN2209

[Wint Htet @Spring19NFLXCFO]

If NFLX paid out its 2018 earnings of $2.68 per share as a dividend, it would produce a dividend yield of just 0.8%. @ProfLowell #FIN2209

[Wint Htet @Spring19NFLXCFO]

NFLX does not pay dividends— instead, NFLX wants to use that money to make new content, refinance debt, and sustain long term growth. @ProfLowell #FIN2209

[Wint Htet @Spring19NFLXCFO]

NFLX ROE is 27.46, and its ROA is 5.38. This means the company is doing well at using the money it earns to generate returns. @ProfLowell #FIN2209

[Wint Htet @Spring19NFLXCFO]

According to https://t.co/WjS9LPQ1Rq,
stock market experts give NFLX an Outperform rating, despite a decrease in sales... content is king, and NFLX’s ability to produce quality content at a fast pace gives investors high hopes. @ProfLowell #FIN2209

[Wint Htet @Spring19NFLXCFO]

NFLX Long-Term DE is 198.29- the company should leverage its assets more efficiently to take on debt and increase ROI for investors.@ProfLowell #FIN2209

[Wint Htet @Spring19NFLXCFO]

Even though there was a slow-down in capex growth in 2018 and NFLX is currently showing negative FCF, Moody’s Investors predict that continued growth subs will improve margins over time and allow NFLX to hit break-even in 2022. #Fin2209 @ProfLowell

[Wint Htet @Spring19NFLXCFO]

Netflix Inc's twelve months Capex was $174mil at the end of 2018– NFLX posts below average annual Capital Expenditures growth of -20.25% every year. @ProfLowell #Fin2209

[Wint Htet @Spring19NFLXCFO]

NFLX raises billions of dollars in debt financing to invest in its content library. NFLX uses the net proceeds from debt financing for content acquisitions, production and development, and capital expenditures to keep it ahead of the game. #Fin2209 @ProfLowell

[Wint Htet @Spring19NFLXCFO]

NFLX ended 2018 down 36% from early July, and is down 8% since January 15– Investors will not subsidize Netflix’s huge cash losses forever! NFLX needs to brainstorm more efficient ways to cover for increased content spending. @ProfLowell #Fin2209

[Wint Htet @Spring19NFLXCFO]

Analysts from @CreditSuisse predict Netflix will reach 264 million subscribers and 40 percent global penetration in 2022. Its shares are up more than 6,000 percent the last 10 years and 33 percent this year alone. @ProfLowell #Fin2209

[Wint Htet @Spring19NFLXCFO]

Since December, NFLX shares have increased sharply from $234 to $360 — or about 53%. @ProfLowell #Fin2209

[Wint Htet @Spring19NFLXCFO]

NFLX debt is getting expensive- interest rates and the company’s leverage is increasing. Its latest offering received a bad rating and a higher interest rate of 6%. To meet investors’ expectations for growth, Netflix must keep producing quality content. @ProfLowell #FIN2209

[Wint Htet @Spring19NFLXCFO]

FAANG stocks may seem volatile, but sales growth expectations and price-earnings valuations lead to analysts predicting double digit share price increases in the near future ! @ProfLowell #FIN2209