NFLX

Netflix’s first mover advantage was propelled on borrowed wheels – the licensed content of competitors. Now competitors want their wheels back, and Netflix is racing against time to build new ones, and it’s coming at a high cost.

A business without cash flow is useless to shareholders. In Netflix’s “Tapeworm” business model, everyone wins except shareholders, who will likely receive no cash despite paying a hefty premium for NFLX’s best-case scenario growth.