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Permabear weighs in on Netflix

Published 04/12/2018, 12:29 PM
© Reuters.  Permabear weighs in on Netflix
NFLX
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  • A permabear on Netflix (NFLX +2%) is sticking to his guns due to the financial and competitive risks seen on the company.
  • Wedbush's Michael Pachter warns that Netflix's free cash flow will be in the negative $3B to $4B range for at least the next couple of years.
  • Pachter: "If free cash flow continues to get worse, the debt balance could approach $15 billion, or around $30 per share for a company that "earns" $3 to $4 per share annually. What’s not to love about that?"
  • He also brings up the eventual ceiling for the U.S. business in terms of subscribers.
  • Wedbush keeps an Underperform rating and price target of $110 (not a misprint) on Netflix.
  • Now read: Netflix: What If It Hits 375 Million Subscribers?


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