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Netflix shares rise 12% on strong subscriber growth, considers share buybacks - CNBC
Jan 19, 2021 57 secs
Netflix reported earnings for the fourth quarter of 2020 after the bell on Tuesday, announcing it is "very close" to being free cash flow positive and is considering stock buybacks.

Netflix's expectation of soon becoming free cash flow positive would bring to life the bull case for the stock.

Netflix said it would no longer need to raise external financing for daily operations and would even explore returning cash to shareholders. .

Netflix has been free cash flow positive for the past three quarters, though executives mostly credited that as an effect of postponed production during the pandemic.

Free cash flow for Q4 was negative as predicted due to production restarts in some regions, but not as significant as expected. Free cash flow for full year 2020 was +$1.9 billion versus -$3.3 billion in 2019.

"Disney+ had a massive first year (87 million paid subscribers!) and we recorded the biggest year of paid membership growth in our history," executives wrote.

"The Midnight Sky," starring and directed by George Clooney, was the biggest original film of the quarter, Netflix said, with 72 million member households watching in the first four weeks.

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