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Netflix stock drops 6% after earnings miss due to Brazilian tax fight

1. Netflix's revenue grew 17.2% to $11.5 billion, a record quarter. 2. Shares fell 6% post-earnings due to a $619 million tax expense. 3. Operating income was $2.55 billion, missing analyst estimates significantly. 4. Netflix reported its best ad sales quarter ever, doubling commitments from advertisers. 5. Viewership share reached 8.6%, still below YouTube's 13% share.

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FAQ

Why Bearish?

The significant tax-related expense and missing earnings expectations led to a share decline, echoing past instances where similar misses caused price drops.

How important is it?

The record revenue growth contrasts with missing income targets, likely leading investors to reassess Netflix's future profitability.

Why Short Term?

The immediate reaction to earnings can stabilize, but ongoing tax disputes and competition may keep pressure on stock prices.

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