Netflix's Creeping Debt Problem

With its big push into producing exclusive programming, Netflix has had to take on more debt. What's more, the company says that it plans to keep spending on original content, and to fund that investment through more debt in the future.

NFLX Long Term Debt Chart
NFLX Long Term Debt Chart

NFLX Long Term Debt data by YCharts.

In the video below, Fool contributor Demitrios Kalogeropoulos argues that the gamble has been a good one, as exclusive shows like House of Cards have created a halo effect around the service that's keeping existing subscribers longer, and making it easier for Netflix to sign up new members. Still, that only works as long as the company's subscriber growth continues, and as long as the hits keep on coming.

Can Netflix keep up its performance for investors as well? To get The Motley Fool's perspective, check out our premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. The report includes a full year of updates to cover critical new developments, so click here and claim your copy today.

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Fool contributor Demitrios Kalogeropoulos owns shares of Netflix. Erin Miller has no position in any stocks mentioned. The Motley Fool recommends Netflix. The Motley Fool owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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