Netflix Shares Drop After Earnings Miss, Breaking Profit Streak Amid Brazil Tax Dispute
Netflix reported a surprise earnings miss in Q3, ending a six-quarter profit streak. The company cited a $619 million Brazil tax expense, but shares dropped 6% in extended trading as analysts questioned underlying growth trends.
Earnings Shortfall and Market Reaction
Netflix shares reportedly fell approximately 6% in extended trading after the streaming giant announced third-quarter results that missed earnings expectations, according to company reports. The decline followed Netflix’s first earnings miss in six quarters, which sources indicate was primarily attributed to a $619 million expense tied to a tax dispute in Brazil. Despite revenue matching analyst forecasts at $11.5 billion, the earnings per share of $5.87 fell short of the $6.96 projection.
