Netflix Faces Financial Setback Due to Brazilian Tax Dispute

Netflix's third-quarter earnings report revealed a $619 million tax expense from Brazil, significantly impacting its operating margin and leading to a stock price drop of over 6%. Despite a 17% revenue increase to $11.51 billion, the company missed earnings expectations, raising concerns about its financial stability and growth prospects in international markets. CFO Spencer Neumann addressed the unusual tax burden, emphasizing the challenges Netflix faces in navigating regulatory issues while maintaining ad growth.