Tax Dispute Lifts Concerns at Netflix (NLX)

5 days ago

Emily Grafo

"That's right. So Netflix, ticker NLX, down about 5% right now in the post market. The revenue forecast missed estimates with a projection around 45.1 billion, falling in the midpoint of their previous range. Then they mentioned a tax dispute with Brazil that cut into third quarter earnings, marring results that otherwise aligned with Wall Street expectations. The streaming company had to pay $619 million to settle a multi-year dispute, and they noted they would have beaten forecasts if not for that expense."

The commentary points out challenges for Netflix as its post-market price drops by 5% due to a miss in revenue forecasts and an unexpected $619 million tax settlement in Brazil. This tax dispute negatively impacted earnings, raising concerns despite otherwise solid performance figures.

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