Netflix's recent earnings report has raised concerns as the company missed Wall Street's expectations for the third quarter, primarily due to a dispute with Brazilian tax authorities that affected its operating margins. Despite achieving revenue of $11.51 billion, the earnings per share fell short, which could impact investor confidence. This situation is significant as it highlights the challenges Netflix faces in international markets, particularly in navigating regulatory issues while trying to maintain robust ad growth.

Netflix's third-quarter earnings report reveals a mixed bag, with revenue rising 17% to $11.51 billion but adjusted earnings per share falling short of expectations at $5.87. This disappointment comes amid a significant tax dispute in Brazil, which has raised concerns about the company's financial stability in the region. The decision to stop regularly reporting subscriber data earlier this year adds to the uncertainty, making it crucial for investors to closely monitor how these challenges will impact Netflix's future growth.