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Fiscally irresponsible? I am looking at this graph and they have been profitable since their IPO. Looks like they started tweaking knobs to be highly profitable 4 years ago. From an investor perspective, I see nothing wrong with the business. It's just that it isn't growing subscribers anymore but profit per share is still going up.

https://www.macrotrends.net/stocks/charts/NFLX/netflix/net-i...



Now check out how much money they borrowed ever year to produce and acquire content.

https://www.barrons.com/articles/netflix-is-borrowing-anothe...

That just changed last year.


Debt, especially low interest debt, is not a bad investment if it is used to grow the company. Since content is the only differentiator in the streaming market, this looks like a good investment.

An IPO is a form of taking on debt but issuing more shares is not the only way to take on debt.

If no debt was required to grow the company and be profitable, the company could have stayed private. Of course this doesn't work because early investors want to see some returns after 5-10 years and an IPO is the obvious way to cash them out.


Netflix’s debt is considered “junk” which is definitely not low interest.

https://variety.com/2019/digital/news/netflix-raises-2-2-bil...

What do they have to show for it as far as valuable IP? They spent most of it on temporary licensing deals.




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