What does “Its cash flow is deeply negative” mean?Var, Free Cash Flow, Moving Average of Closing...
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What does “Its cash flow is deeply negative” mean?
Var, Free Cash Flow, Moving Average of Closing priceWhat does it mean to “pay yourself first?”If I'm cash-flow negative, should I dollar-cost-average the money from my bonus over the entire year?What does “100% stock dividend” mean?Calculating the Free Cash Flow (FCF)what does “principal plunges” mean in this context?What does “conviction sector” mean?What does “building wealth” mean as an investing term?How to know if negative cash flow rental property is a good investment?How can I calculate the ROI of an investment from its cash flow?
Does "Its cash flow is deeply negative" mean "Netflix makes a big loss"?
Netflix is profitable, but only on an accounting basis. Its cash flow is deeply negative as it pours cash into content. Apple will need to be just as aggressive with content spending to stand a chance. Spotify isn't profitable, and Apple Music likely isn't, either. Apple's news and game subscription services may have the best chance of producing profits, but they're unlikely to become big enough to move the needle.
Source: https://www.ibtimes.com/problem-apples-services-strategy-2780023
investing
asked 5 hours ago
hailehaile
26217
add a comment |
Does "Its cash flow is deeply negative" mean "Netflix makes a big loss"?
Netflix is profitable, but only on an accounting basis. Its cash flow is deeply negative as it pours cash into content. Apple will need to be just as aggressive with content spending to stand a chance. Spotify isn't profitable, and Apple Music likely isn't, either. Apple's news and game subscription services may have the best chance of producing profits, but they're unlikely to become big enough to move the needle.
Source: https://www.ibtimes.com/problem-apples-services-strategy-2780023
investing
asked 5 hours ago
hailehaile
26217
Funny, from the title I thought this one would be about netflix...
– quid
3 hours ago
add a comment |
Does "Its cash flow is deeply negative" mean "Netflix makes a big loss"?
Netflix is profitable, but only on an accounting basis. Its cash flow is deeply negative as it pours cash into content. Apple will need to be just as aggressive with content spending to stand a chance. Spotify isn't profitable, and Apple Music likely isn't, either. Apple's news and game subscription services may have the best chance of producing profits, but they're unlikely to become big enough to move the needle.
Source: https://www.ibtimes.com/problem-apples-services-strategy-2780023
investing
asked 5 hours ago
hailehaile
26217
Does "Its cash flow is deeply negative" mean "Netflix makes a big loss"?
Netflix is profitable, but only on an accounting basis. Its cash flow is deeply negative as it pours cash into content. Apple will need to be just as aggressive with content spending to stand a chance. Spotify isn't profitable, and Apple Music likely isn't, either. Apple's news and game subscription services may have the best chance of producing profits, but they're unlikely to become big enough to move the needle.
Source: https://www.ibtimes.com/problem-apples-services-strategy-2780023
investing
investing
asked 5 hours ago
hailehaile
26217
asked 5 hours ago
hailehaile
26217
asked 5 hours ago
hailehaile
26217
asked 5 hours ago
hailehaile
26217
asked 5 hours ago
hailehaile
26217
26217
Funny, from the title I thought this one would be about netflix...
– quid
3 hours ago
add a comment |
Funny, from the title I thought this one would be about netflix...
– quid
3 hours ago
Funny, from the title I thought this one would be about netflix...
– quid
3 hours ago
Funny, from the title I thought this one would be about netflix...
– quid
3 hours ago
add a comment |
2 Answers
2
active
oldest
votes
Correct, it means they're losing money.
Let's say I make $100,000 a year, but I'm spending $200,000 a year. That would mean my cash flow is -$100,000. That would be "deeply negative."
answered 5 hours ago
IcavalIcaval
342
New contributor
Icaval is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
1
This answer is inaccurate. If you have an income of $100,000 and spend $200,000 on assets which retain a market value of $200,000, your cash flow would be negative, but you would not be losing money (if you consider "money" to be synonymous with "capital"). You would have $100,000 debt but $200,000 in assets, so your net worth would be $100,000. A good answer would point out this difference, like the one by Ganesh Sittampalam.
– Philipp
29 mins ago
add a comment |
It means they're making a big loss in cash terms, yes. The claim that they are profitable is based on a theory that they are accumulating valuable assets in exchange. In Netflix's case, it's that they are spending lots of money on their content, which they expect to be valuable in future years too.
So essentially lots of cash going out the door now, but they hope to make it back in future based on people continuing to pay for the things they are producing now.
There's some discussion and skeptical analysis here and here.
answered 4 hours ago
Ganesh Sittampalam♦Ganesh Sittampalam
18.6k55590
add a comment |
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2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
Correct, it means they're losing money.
Let's say I make $100,000 a year, but I'm spending $200,000 a year. That would mean my cash flow is -$100,000. That would be "deeply negative."
answered 5 hours ago
IcavalIcaval
342
New contributor
Icaval is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
1
This answer is inaccurate. If you have an income of $100,000 and spend $200,000 on assets which retain a market value of $200,000, your cash flow would be negative, but you would not be losing money (if you consider "money" to be synonymous with "capital"). You would have $100,000 debt but $200,000 in assets, so your net worth would be $100,000. A good answer would point out this difference, like the one by Ganesh Sittampalam.
– Philipp
29 mins ago
add a comment |
Correct, it means they're losing money.
Let's say I make $100,000 a year, but I'm spending $200,000 a year. That would mean my cash flow is -$100,000. That would be "deeply negative."
answered 5 hours ago
IcavalIcaval
342
New contributor
Icaval is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
1
This answer is inaccurate. If you have an income of $100,000 and spend $200,000 on assets which retain a market value of $200,000, your cash flow would be negative, but you would not be losing money (if you consider "money" to be synonymous with "capital"). You would have $100,000 debt but $200,000 in assets, so your net worth would be $100,000. A good answer would point out this difference, like the one by Ganesh Sittampalam.
– Philipp
29 mins ago
add a comment |
Correct, it means they're losing money.
Let's say I make $100,000 a year, but I'm spending $200,000 a year. That would mean my cash flow is -$100,000. That would be "deeply negative."
answered 5 hours ago
IcavalIcaval
342
New contributor
Icaval is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Correct, it means they're losing money.
Let's say I make $100,000 a year, but I'm spending $200,000 a year. That would mean my cash flow is -$100,000. That would be "deeply negative."
answered 5 hours ago
IcavalIcaval
342
New contributor
Icaval is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
answered 5 hours ago
IcavalIcaval
342
New contributor
Icaval is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
answered 5 hours ago
IcavalIcaval
342
answered 5 hours ago
IcavalIcaval
342
342
New contributor
Icaval is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
Icaval is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Icaval is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
1
This answer is inaccurate. If you have an income of $100,000 and spend $200,000 on assets which retain a market value of $200,000, your cash flow would be negative, but you would not be losing money (if you consider "money" to be synonymous with "capital"). You would have $100,000 debt but $200,000 in assets, so your net worth would be $100,000. A good answer would point out this difference, like the one by Ganesh Sittampalam.
– Philipp
29 mins ago
add a comment |
1
This answer is inaccurate. If you have an income of $100,000 and spend $200,000 on assets which retain a market value of $200,000, your cash flow would be negative, but you would not be losing money (if you consider "money" to be synonymous with "capital"). You would have $100,000 debt but $200,000 in assets, so your net worth would be $100,000. A good answer would point out this difference, like the one by Ganesh Sittampalam.
– Philipp
29 mins ago
1
1
This answer is inaccurate. If you have an income of $100,000 and spend $200,000 on assets which retain a market value of $200,000, your cash flow would be negative, but you would not be losing money (if you consider "money" to be synonymous with "capital"). You would have $100,000 debt but $200,000 in assets, so your net worth would be $100,000. A good answer would point out this difference, like the one by Ganesh Sittampalam.
– Philipp
29 mins ago
This answer is inaccurate. If you have an income of $100,000 and spend $200,000 on assets which retain a market value of $200,000, your cash flow would be negative, but you would not be losing money (if you consider "money" to be synonymous with "capital"). You would have $100,000 debt but $200,000 in assets, so your net worth would be $100,000. A good answer would point out this difference, like the one by Ganesh Sittampalam.
– Philipp
29 mins ago
add a comment |
It means they're making a big loss in cash terms, yes. The claim that they are profitable is based on a theory that they are accumulating valuable assets in exchange. In Netflix's case, it's that they are spending lots of money on their content, which they expect to be valuable in future years too.
So essentially lots of cash going out the door now, but they hope to make it back in future based on people continuing to pay for the things they are producing now.
There's some discussion and skeptical analysis here and here.
answered 4 hours ago
Ganesh Sittampalam♦Ganesh Sittampalam
18.6k55590
add a comment |
It means they're making a big loss in cash terms, yes. The claim that they are profitable is based on a theory that they are accumulating valuable assets in exchange. In Netflix's case, it's that they are spending lots of money on their content, which they expect to be valuable in future years too.
So essentially lots of cash going out the door now, but they hope to make it back in future based on people continuing to pay for the things they are producing now.
There's some discussion and skeptical analysis here and here.
answered 4 hours ago
Ganesh Sittampalam♦Ganesh Sittampalam
18.6k55590
add a comment |
It means they're making a big loss in cash terms, yes. The claim that they are profitable is based on a theory that they are accumulating valuable assets in exchange. In Netflix's case, it's that they are spending lots of money on their content, which they expect to be valuable in future years too.
So essentially lots of cash going out the door now, but they hope to make it back in future based on people continuing to pay for the things they are producing now.
There's some discussion and skeptical analysis here and here.
answered 4 hours ago
Ganesh Sittampalam♦Ganesh Sittampalam
18.6k55590
It means they're making a big loss in cash terms, yes. The claim that they are profitable is based on a theory that they are accumulating valuable assets in exchange. In Netflix's case, it's that they are spending lots of money on their content, which they expect to be valuable in future years too.
So essentially lots of cash going out the door now, but they hope to make it back in future based on people continuing to pay for the things they are producing now.
There's some discussion and skeptical analysis here and here.
answered 4 hours ago
Ganesh Sittampalam♦Ganesh Sittampalam
18.6k55590
answered 4 hours ago
Ganesh Sittampalam♦Ganesh Sittampalam
18.6k55590
answered 4 hours ago
Ganesh Sittampalam♦Ganesh Sittampalam
18.6k55590
answered 4 hours ago
Ganesh Sittampalam♦Ganesh Sittampalam
18.6k55590
18.6k55590
add a comment |
add a comment |
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Funny, from the title I thought this one would be about netflix...
– quid
3 hours ago