Los Gatos’ Netflix Inc forecasts an end to borrowing-spree, shares spacedive

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Los Gatos’ Netflix Inc forecasts an end to borrowing-spree, shares spacedive

Netflix Inc., the Los Gatos, California-headquartered over-the-top streaming media industry trailblazer, had revealed its quarterly earnings’ report for Q4, 2020, that insanely beat Wall Street estimates for new paid subscriptions as pandemic-wary people across the globe remained heavily reliant on the streaming media pioneer amid an outbreak at large.

On top of that, Netflix Inc. was also quoted saying at its quarterly earnings’ report that the streaming media giant had surpassed a landmark 200-million paid subscriptions over the fiscal fourth quarter of the year that ended on December 31, 2020, while Netflix had also told that the cash-strapped streaming media mogul would no longer require to borrow billions of US dollars to fund its original TV shows and movies.

Besides, Netflix Inc. had added that it had been brewing off an option to keep its debt-load in a tight range between $10 to $15 billion, while followed by the reveal of the announcement, shares’ prices of Netflix Inc., which surged as much as 61 per cent year-to-date, spacedived as much as 16 per cent, however, wrapped up the week with a gain of 13 per cent to $565.17 following a profit-taking sell-off wave on Friday.

Netflix signals an end to a decade-long borrowing spree

In tandem, earlier this week, the world’s most dominant force in a highly congested streaming media industry, Netflix Inc. which had stockpiled more than $15 billion in debts in less than a decade, said in a letter to its stakeholders, “We believe we no longer have a need to raise external financing for our day-to-day operations,” adding that the company was working out options to return the excess cash flows to its customers through share repurchase programs.

Meanwhile, addressing Netflix Inc.’s latest announcement as a steep backlash for new entrants into the rapidly surging streaming media industry amid a pandemic at large, an eMarketer analyst Eric Haggstrom said, “This is in sharp contrast to Disney and many other new entrants into the streaming market who expect to lose money on streaming for the next few years.

Concomitantly, according to Netflix Inc.’s fourth-quarter earnings’ report released earlier this week, the Los Gatos-based streaming media Goliath had added an 8.5 million in new paid subscriptions over Q4, 2020, beating an analysts’ estimate of 6.1 million, while the company had reported a net income of $1.19 per share in the fourth fiscal quarter of the year, missing a Wall Street estimate of an earnings of $1.39 per share on an average.