Netflix Faces Downside from Tax Dispute Despite Strong Engagement

4 days ago

Lisa Mateo

">> One more slip in here. 30 seconds. One more. Netflix, NFLX. Okay, so they had strong programming. I mean, K-pop Demon Hunters. We can't go wrong, right? Um, record subscriber engagement, beat him free cash flow, but the shares are down about 7% because of this multi-year tax dispute with Brazil. going back to 2022, it cut into its third quarter earnings. They had to pay about $619 million to settle it. So, that's the bad news for them. But there's also, you know, other news, possibility of mergers, acquisitions because of that free cash flow money. Um, could say they may buy some of Warner Brothers Discovery. That's what Bloomberg is reporting. But we shall see."

The speaker notes that Netflix delivered strong programming and subscriber engagement with robust free cash flow, yet shares dropped 7% due to a significant tax dispute settlement. They also hint at future M&A possibilities, creating a mixed outlook.

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