Netflix Stock Sinks On Q3 Earnings Miss, Modest Q4 Raise

Core Insights - Netflix reported mixed results for Q3, with earnings of $5.87 per share on sales of $11.51 billion, missing analyst expectations of $6.96 per share on the same sales figure [2][3] - The company attributed the earnings shortfall to expenses from a dispute with Brazilian tax authorities [2] - For Q4, Netflix forecasts earnings of $5.45 per share on sales of $11.96 billion, slightly above analyst expectations of $5.43 per share [3] Financial Performance - In the previous year, Netflix earned $5.40 per share on sales of $9.82 billion, indicating a year-over-year increase in earnings and sales [2] - The stock fell over 6% in after-hours trading following the earnings report, closing at 1,166 after a slight increase during regular trading [3] Market Position - Netflix ranks first among 21 stocks in the Leisure-Movies & Related industry group, with an IBD Composite Rating of 95 out of 99 [5] - The company has been consolidating for 17 weeks at a buy point of 1,341.15, which is also its all-time high reached on June 30 [4] Competitive Landscape - Netflix competes with major streaming services including Disney+, HBO Max, Amazon Prime Video, and Apple TV [5] - Recently, Netflix announced a deal to feature select video podcasts from Spotify, expanding its content offerings [6]