the negative cash flow is quite underplayed by the media ..
but i guess that's how the media works these days: just about putting the chart into words...
Be careful there .. it could go up just like everything else.. likely not because of the reason you stated
imo the concern regarding a flat performance is that they derive a significant % of their cashflow from option exercising ..
do they care? they are playing with OPM (other people's money)
I am not going to keep repeating myself here. So, this is my last attempt: The problem is that you really do need to read into the 10K/Q to see what those numbers are:
From the latest 10K:
"As of March 31, 2015 , the Company had $9.8 billion of obligations comprised of $2.4 billion included in "Current content liabilities" and $1.9 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $5.5 billion of obligations that are not reflected on the Consolidated Balance Sheets."
$2.4b is just a number pulled out from a hat. That's arbitrary enough for you to see a positive stockholder equity.
The stockholder equity (as of April 17's 10K) of $1.9B is the same as $3B if they made it so. You need to see where those numbers are coming from. And it won't show on just a page of balance sheet extract from yahoo or google.
i thought the market cap number on Yahoo is not correct. (?) It is closer to 2-3B (?)
Tried this once in Las Vegas. I say it is an impressive fast food chain. The valuation seems horrible though.
imo this is the driving reason for the action these two days especially today .. next week will be driven by something else.
I would treat that number very carefully.
If you do read that last 10Q/K, you would notice that the stockholder equity is roughly just the difference of two much bigger numbers: the number they assign to the value of their content library, and the 'current' liability. Notice that the liability is 'current' liability and there is a tail end to the obligation to the 'content liability', which is a much bigger number. The funny part depends on how much they assign to value their content library. And this can be rather arbitrary. Or put in other words, I can do more creative accounting to give you even more shareholder equity. Whenever you want it or not is another matter.
they want all outstanding PUTS worthless at the end of today .. 570-575 is where most calls are at.
next week will be another story.
On your yahoo page, there is link to SEC filings. You may then go there and pull up the 10K filed by the company on Jan 29, 2015. And from there search for the balance sheets (e.g. total liabilities is beyond 10B as I recall).
Seldom people would rely on data published by yahoo finance. For one thing they are very outdated. Most importantly, there are plenty errors. Just today I found at least a couple problems on some other companies (e.g. check out shack shak's market cap; this happens often).
imo the market is beyond that recognition. you can see how the market reacts with a dismal gdp number and very poor S&P 500 earnings. If you digged up S&P 500's official earnings records, the dropped started 6 months ago. I would not be that complacent. this is more like a known fact by now.