Is it a positive that NFLX loses $3.5 million of its cash every day? It has to do a secondary or debt offering some time in the next 30 days or risk being technically insolvent. They can buy an extra 90 days if they lied during their last debt offering and use all of the money for cash needs instead of refinancing the existing debt. I haven't read the prospectus but this may be a technical default, I am not sure.
Is it a positive that they changed the accounting and are no longer fully expensing content costs? The indirect result of this is the creation of another intangible asset on the balance sheet. This company which is all about hardware and equipment will have a net tangible asset value of negative $1.5 billion at the end of this year.
Any accountant can look at this company and see the writing on the wall.