As one of the most visible market success stories of the past decade (a period during which its shares climbed +5,000%), Netflix's staggering success has made it the most visible example of how Silicon Valley's pixie dust can blind investors to time-tested fundamentals like, say, a company's prospects for ever turning a profit.
Maybe it's due to naivety, or Buffett's 'invest in what you know' maxim taken to an extreme, but investors' unwillingness to acknowledge Netflix's rapidly growing debt pile (soon to be more than $12 billion following the company's latest oversubscribed bond offering, something that has become a bi-quarterly ritual for the streaming giant)...
Maybe it's due to naivety, or Buffett's 'invest in what you know' maxim taken to an extreme, but investors' unwillingness to acknowledge Netflix's rapidly growing debt pile (soon to be more than $12 billion following the company's latest oversubscribed bond offering, something that has become a bi-quarterly ritual for the streaming giant)...