Here is why: They have less than $350 million in cash and investments (some of that is restricted). They have $490 million in Current Liabilities plus they have $754.5 million in off balance sheet current content obligations plus they want to expand into a South American country (good luck with very slow internet!). They need to immediately issue a secondary, which will increase the float and really hit a momo stock like this. (It is possible that part of stock price increase was to increase the 10 day average, which these are usually done at). Expect a seconday offering announcement very, very soon!
Good post. NFLX is in big trouble once again. Their numbers just don't add up especially with their lofty growth projections which does not even take into account emerging APPLE's I-cloud or HULU's video streaming. Look for some downgrades by next week.
I would not be surprised to see this announced tonight or tomorrow. They have $894 million due within the year and only have $350 million of it on hand ($544 million deficit), plus need to write many new content checks, plus need money for expansion.