All trends are looking strong for Netflix despite Q3 earnings miss, says Tom Rogers

Netflix Financial Performance & Strategy - Netflix shares experienced a 65% decrease due to earnings missing estimates and a reduced full-year forecast for operating margins [1] - Without a one-time tax issue in Brazil, Netflix's margins would have exceeded 30% [3] - Netflix is leading in pricing, international distribution, and programming budget scale [3] - Netflix's advertising monetization is just beginning, indicating strong potential for future growth [3] - Netflix has clarified that it is unlikely to be a major bidder for Warner Brothers, as nothing is a "must-have" [5] Competitive Landscape & Potential Acquisitions - Warner Brothers is considering a sale, attracting unsolicited bids [4] - Paramount needs Warner Brothers to gain entertainment scale and reduce churn [8] - NBC Comcast, with Peacock, could also benefit from Warner Brothers' entertainment scale to address high churn [9] - Amazon has shown interest in owning a movie studio (MGM) and bundling streaming services, making it a more likely player than Netflix for Warner Brothers assets [13] - Warner Brothers is likely pursuing a split, potentially selling Warner studio and HBO separately to create a more competitive bidding environment [11]