The market capitalization of Netflix shares is now greater than those of America’s most storied blue chip industrial company, General Electric (GE).
For comparison’s sake, in 2017 GE generated free cash flows of $5.6 billion, and Netflix had negative free cash flows of $2 billion.
Despite that disparity in actual business success, GE is going through management and legal turmoil, while Netflix is riding high on its status as one of the FAANG stocks. Time will tell whether investors care more about potential future cash flows, or those that actually exist today.
The following two tabs change content below.
Jeremy Jones, CFA
Jeremy Jones, CFA is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Jeremy is a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
- Peak Greater Fool - June 15, 2018
- A Private Equity Quant Fund? - June 14, 2018
- Highest Number of Pay Raises in Decades - June 13, 2018