Netflix’s Earnings Miss Exposes Risks of Global Tax Disputes and Overreliance on Expansion

Netflix recently reported earnings that missed Wall Street targets, a disappointing outcome that breaks its six-quarter streak of beating analyst expectations. The streaming powerhouse blamed an unexpected $619 million charge related to a tax dispute in Brazil for the shortfall—an alarming reminder of how international regulatory conflicts can imperil American businesses expanding abroad. While Netflix touted its robust lineup of original shows and revenue growth from subscriptions and advertising, investors responded sharply, sending shares down roughly 5% in after-hours trading. The stark market reaction highlights skepticism about the company’s ability to sustain growth amid mounting fiscal and competitive pressures. Are...