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Despite missing on most metrics during its earnings earlier in the week, Netflix shares soared back above $300 as shorts squeezed and hope ruled.
Since that time, things have not gone so well as the cash-burning machine has seen profit-taking slam the stock lower and news this morning of Verizon unveiling plans to offer its wireless subscribers 12 months of free access to Disney’s newest streaming service Disney+.
Disney+ - Nov - Month - Verizon - Verizon
Disney+ is set to launch for Nov. 12 for $6.99 per month, which Verizon plans to offer to existing Verizon mobile customers and new Fios Home customers for free.
Disney shares jumped as Netflix dumped...
Netflix - % - Post-earnings - Spike - Highs
Leaving Netflix now down almost 16% from its post-earnings spike highs...
As a reminder, the company burned through $551 million in Q3, and has now burned money for 21 consecutive quarters, with Free Cash Flow since Q3 2014 a total of $9.4 billion.
Company - Cash - Flow - Q3 - Q3'18
As the company itself states, "free cash flow in Q3 totaled -$551 million vs. -$859 million in Q3’18. For the full year 2019, we’re still expecting FCF of approximately -$3.5 billion." There was some good news: NFLX says it is now "expecting free cash flow to improve in 2020 vs. 2019 and we expect to continue to improve annually beyond 2020. As we move slowly toward FCF positive, our plan is to continue to use the high yield market in the interim to finance our investment needs."
But while Netflix's lack of profitability and relentless cash burn is...
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Satan's greatest desire is to convince the world he doesn't exist, and he has quite nearly succeeded.