Core Viewpoint - The article discusses Netflix's recent financial performance, highlighting a significant impact from a tax dispute in Brazil, which affected operating margins but is expected to have a minimal annual impact moving forward. Financial Performance - The tax dispute in Brazil resulted in over a 300 basis points impact on operating margin for the quarter, but future annual impacts are projected to be only about 20 basis points [1][2]. - Netflix's revenue was in line with expectations, but the fourth quarter guidance did not impress, contributing to a decline in stock price [5]. Content Strategy - Netflix has slightly reduced content spending, indicating confidence in its existing programming slate, which is already considered "sticky" [7]. - The company is focusing on the advertising opportunity, although current ad delivery rates are low, limiting revenue potential [8]. M&A Activity - Netflix is exploring potential acquisitions, particularly interested in parts of Warner Brothers Discovery, but is not looking to acquire legacy media networks [10][14]. - The company emphasizes organic growth and responsible investment over M&A to achieve its growth targets [11][14].

Netflix shares sliding after a costly tax hit in Brazil wiped out what could've been another blockbuster quarter. The company says the $619 million settlement dragged earnings below forecasts though revenue and outlook held steady. Robert Fishman, Research Analyst at Moffettnathanson, joined Bloomberg Open Interest to talk about the results. ...

Now turning to Netflix as its third quarter results are just hitting the wire and you can see the stock is down a quick 5% here in the after hours. Uh Q3 EPS, let's start there. 587.She was at 694. So that's a miss on the bottom. Q3 revenue top line comes in at 11.51% billion.Street was closer to 11.52% billion. Let's turn ahead. What do they see in Q4.They're saying Q4 EPS they're looking for 545. The estimate was 542. And for Q4 revenue, they're saying they look for 11.96% billion.The street was at 11.9% ...

We'll go to the markets. Got a little bit of work to do here at 12:00 noon in the east because we are red across the board. The Russell is today's biggest decliner out of the majors.It is the NASDAQ. Um, underwhelming. That's what they're saying about Netflix and the results.The stock's down a bunch. We'll take a look. So, they had the Brazilian tax dispute, which is one of the issues.Core margins were above estimates. record high engagement and viewership. They're all in on leveraging AI, they say in their ...

Han Myung-Gu / WireImage "KPop Demon Hunters" has drawn viewers to Netflix in recent months. Key Takeaways The streamer's third-quarter earnings fell short of Wall Street estimates after logging a one-time tax expense in Brazil. Netflix's stock is the biggest loser in the S&P 500 Wednesday, falling some 10%. Even the "KPop Demon Hunters" were no match for the jump scares in Netflix's (NFLX) latest earnings. The streaming giant has been riding high on the success of the Korean cultural import—its an ...

Core Insights - Netflix reported Q3 2025 earnings of $5.87 per share, missing estimates by 14.8% due to a one-time $619 million expense related to a tax dispute in Brazil, although this represents an 8.7% increase from $5.40 per share in the same quarter last year [1][2] - Despite the earnings miss, Netflix shares fell 5-7% in after-hours trading, but the stock has gained over 48.6% in the past year, reflecting strong operational performance and a successful content strategy [2] - Revenues increased by 17.2% year over year, driven by membership growth, higher subscription pricing, and increased advertising revenues, although it missed the consensus mark by 0.12% [3] Financial Performance - Operating income totaled $3.25 billion, up 12% year over year, but the operating margin was 28%, below the guidance of 31.5% due to the Brazilian tax dispute [8] - Marketing expenses rose 22.3% year over year to $786.3 million, while technology and development expenses increased 16.1% to $853.6 million [9] - Non-GAAP free cash flow was reported at $2.66 billion, an increase from $2.26 billion in the previous quarter, indicating improved operational efficiency [25] Content and Engagement - The animated film "KPop Demon Hunters" became Netflix's most-watched film ever with over 325 million views, significantly contributing to merchandise deals [10][12] - The third quarter saw record engagement, with Netflix achieving its highest quarterly viewing share in the U.S. and U.K. [6] - The return of "Wednesday Season 2" garnered 13.4 million views in its first week, contributing to a strong content slate [14] Advertising and AI Integration - Netflix recorded its best advertising sales quarter ever, on track to more than double ad revenues in 2025 [18] - The company is leveraging AI for ad formats and content recommendations, enhancing its advertising technology [19][23] - Netflix declared itself "all in" on generative AI, utilizing it for content creation and operational efficiencies [21][22] Future Outlook - For Q4 2025, Netflix expects revenues of $11.96 billion, a 16.7% year-over-year growth, and projects earnings per share of $5.45 [27] - The full-year 2025 revenue forecast is set at $45.1 billion, reflecting a 16% growth year over year, with an adjusted operating margin forecast of 29% [28] - The company anticipates free cash flow of approximately $9 billion for the full year, up from previous estimates [29] Upcoming Content - The Q4 2025 content slate includes the final season of "Stranger Things" and major film releases like Guillermo del Toro's "Frankenstein" [30] - Netflix is expanding its live programming strategy with significant events, including an NFL Christmas Day doubleheader [32]

Netflix (NASDAQ: NFLX ) shares have sold off about 6% in after-market hours on a double miss, as revenue came in slightly below because of FX, and an unexpected tax charge in Brazil impacted what would otherwise beI aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a con ...

Core Viewpoint - Analysts believe that Netflix's third-quarter results, which fell short of estimates, do not raise significant concerns, emphasizing the company's advertising growth as a crucial factor for future success [1][4]. Analyst Ratings and Price Targets - Wedbush analyst Alicia Reese reiterated an Outperform rating, lowering the price target from $1,500 to $1,400 [1]. - JPMorgan analyst Doug Anmuth maintained a Neutral rating, reducing the price target from $1,300 to $1,275 [2]. - Goldman Sachs analyst Eric Sheridan kept a Neutral rating with a price target of $1,300 [2]. - Bank of America Securities analyst Jessica Reif Ehrlich reiterated a Buy rating with a price target of $1,490 [2]. - Morgan Stanley analyst Benjamin Swinburne maintained an Overweight rating with a price target of $1,500 [2]. - Guggenheim analyst Michael Morris maintained a Buy rating with a price target of $1,450 [2]. - Canaccord Genuity analyst Maria Ripps maintained a Buy rating with a price target of $1,525 [3]. Financial Performance and Future Outlook - Netflix's third-quarter results and fourth-quarter guidance were described as underwhelming, but analysts noted a compelling growth story [4]. - Analysts highlighted that Netflix is positioning for substantial growth in global advertising, which is expected to become the primary revenue driver by 2026 [5]. - JPMorgan noted that while the third-quarter results were solid, they lacked the upside seen in previous quarters, with ad revenue tracking ahead of expectations [6]. - Goldman Sachs pointed out the lack of detailed guidance for 2026 as a potential negative, but expects rising engagement and revenue growth [7]. - Bank of America noted that the absence of 2026 guidance likely does not indicate a change in underlying fundamentals [8]. - Analysts expect advertising revenue to more than double in 2025, with engagement growth and a constructive pricing backdrop [9]. Engagement and Content Strategy - Analysts observed that Netflix's engagement trends are improving, with a strong content slate contributing to record engagement in Q3 [10][11]. - Canaccord highlighted Netflix's record engagement and advertising growth as key factors in the quarterly results [11]. - Analysts believe Netflix's focus on organic growth will continue to yield membership growth, pricing growth, and increased advertising revenue [11]. Stock Performance - Netflix shares fell 10.1% to $1,115.69, with a year-to-date increase of 25.8% in 2025 [12].

Here to break things down is Loop Capital Markets managing director Alan Gould has a buy rating, a target of 1325. We were just chatting about it during the break. You want to explain the Brazilian thing first.>> Sure. So there was a Brazilian tax issue. It had been disclosed in previous 10 case and 10 cues.It didn't seem like a big deal. There was a Supreme Court, Brazilian Supreme Court case in August with another company uh where the ruling where the company lost and Netflix decided they now had to take ...

Core Insights - The company is focusing on casual and family-friendly games, similar to its previous strategy with family-oriented content on Disney Channel [2][3] - There is a belief that the company should embrace third-party titles rather than trying to develop exclusive games, which has proven to be costly [3][6] - The company is perceived as overly fixated on exclusivity, which is driving up production costs for games [6] Strategy and Execution - The current strategy involves offering games that appeal to the lowest common denominator, which may not be sustainable in the long term [2] - The company has a capable leader in charge of games, but there are concerns that internal dynamics may hinder effective strategy execution [4] - The company needs to adopt a platform mindset similar to Apple’s iOS, allowing third-party games to be available on its service [7][9] Market Positioning - The company is missing opportunities by not including popular games like Candy Crush and Fortnite on its platform [8][9] - By positioning itself as a portal for gaming, the company could attract a wider audience, especially those without gaming consoles [9] - The company has the technological capability to succeed in this space if it shifts its perspective and strategy [7][9]