Netflix stock drops 6% after earnings miss due to Brazilian tax fight

Core Insights - Netflix's third-quarter performance was impacted by a $619 million expense related to a Brazilian tax dispute, despite achieving record revenue driven by popular content [1][3] - The company reported a 17.2% increase in revenue, reaching $11.5 billion, aligning with analyst expectations [1] - Netflix's operating income rose 7.7% year-over-year to $2.55 billion, but fell short of analyst estimates [3] Revenue and Growth - The ad tier emerged as a significant growth area, with Netflix reporting its best ad sales quarter ever and doubling commitments from US advertisers [2] - The robust revenue growth indicates that Netflix's efforts to enhance viewer engagement are yielding positive results [9] Viewership and Competition - Netflix achieved its highest-ever viewership share on US-based smart TVs, averaging 8.6% from July to September, outperforming other paid streaming services [10] - However, Netflix still trails behind YouTube, which had a 13% viewership share, prompting the company to explore video podcasts and attract YouTube creators [11] Subscriber Estimates - Although Netflix no longer discloses subscriber numbers, analysts estimate that the platform has approximately 315 million global members [12]