Netflix(US:NFLX) Hua Er Jie Jian Wen·2025-10-21 21:11Core Insights - Netflix's Q3 performance was disappointing, with unexpected expenses from a tax dispute in Brazil impacting profitability despite strong advertising revenue growth driven by service price increases and robust membership growth [1] - The company's revenue met expectations with double-digit growth, but earnings per share (EPS) and net profit fell short of Wall Street forecasts, leading to a slight downward adjustment in operating margin guidance for the year [1] - Following the earnings report, Netflix's stock initially rose by over 0.2% but later dropped significantly, with after-hours trading showing a decline of up to 7.5%, reflecting a downward trend since reaching a historical high near $1340 on June 30 [1] Financial Performance - Q3 revenue showed double-digit growth, aligning with market expectations [1] - EPS and net profit were significantly below Wall Street expectations, indicating potential challenges in profitability [1] - The company did not make substantial changes to its annual revenue guidance but did slightly lower its operating margin forecast [1] Stock Market Reaction - After the earnings announcement, Netflix's stock experienced a brief increase before a sharp decline in after-hours trading [1] - The stock had previously reached a record high but has since fallen over 7% from that peak, indicating market volatility and investor concerns [1]