Netflix Shares Jump As Streaming Giant Eyes Buybacks, Looks To Break Even On Cash
By Micah Maidenberg
Netflix shares jumped more than 13% Wednesday, the first trading
session following the company's fourth-quarter earnings report.
Shares are surging as investors digest--and price in--a raft of
news from the Los Gatos, Calif., company, including its expectation
that it won't need to tap the debt markets going forward to finance
day-to-day operations and that it believes it will break even on
cash this year.
Netflix is also contemplating a share-repurchase program as it
generates cash. Analysts at JPMorgan Chase & Co. predicted
buybacks could begin in the second half of the year.
The company faces an expanding number of competitors that have
also launched streaming services but still was able to reel in a
net 37 million new subscribers last year, lifting its count to
about 204 million as of the end of the year.
Stifel Financial Corp. predicted that Netflix could reach 400
million subscribers by 2030 as it grows overseas.
Write to Micah Maidenberg at email@example.com
(END) Dow Jones Newswires
January 20, 2021 10:24 ET (15:24 GMT)
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