01.06.2020 NETFLIX Daily Analysis

01.06.2020 NETFLIX Daily Analysis

Netflix has burned billions in cash to fund its giant appetite for new content. And for just as long, bears have pointed to that business model as fundamentally flawed, arguing that the strategy would one day lead to the company's unraveling. COVID-19 and the resulting stay-at-home orders have been an unquestionable tailwind for Netflix, resulting in record subscriber additions of 15.8 million in the first quarter.  At the same time, the crisis has kneecapped competitors like Disney, traditional media companies, and the movie studio/theater ecosystem. Based on the effect of the pandemic, Netflix's own impressive growth, and other recent events, the debate over the streamer's cash burn has essentially become irrelevant.