End of Netflix's cash bonfires in sight as it nears turning profitable

Netflix stunned investors Tuesday by announcing that it's "very close" to becoming a true cash-flow-generating company and that it no longer needs to borrow to finance its day-to-day operations

Netflix Inc would like to thank you for attending its cash bonfires over the years but says it’s time to go home now — and watch more Netflix. The streaming-video company stunned investors Tuesday by announcing that it’s “very close” to becoming a true cash-flow-generating company and that it no longer needs to borrow to finance its day-to-day operations. 

This revelation, which came in the release of fourth-quarter results, is significant because it would seem to firmly rebut the biggest longstanding argument against owning Netflix shares — that the business can’t sustain itself. After all, this is the same company that