The FACE of Baseball
Join Date: Mar 2005
Location: The Book of Love
Re: HBO Max – WarnerMedia’s New Streaming Service
Originally Posted by Chris JeriG.O.A.T
Yes, the way it was explained when I was watching one of those business news channels is Netflix is borrowing billions of dollars to grow their catalog and despite their massive profits, are content with only paying the interest for now.
I can definitely see the potential for that bubble to burst but their stocks are trading at $377 a share (up from $336 in January) and increasing every day, they must've told the shareholders something to keep that confidence especially since they aren't paying a dividend. I do see where you're coming from though, their growth has stalled in the US and they need 50M new users to offset every $10B in loans they take out.
Netflix does a great job marketing. It's probably their greatest strength. It's one of the better marketing schemes of all time really. If they're going to survive then it'll be mostly because of that.