Netflix missed Wall Street’s Q3 earnings targets due to a Brazilian tax expense but forecasted ahead for the year. Shares fell 5.6% in after-hours trading. The company seeks growth in advertising and video games amidst competition from YouTube, Amazon Prime Video, and Disney+. Netflix posted $2.5 billion net income and $5.87 EPS for July-September, with revenue at $11.5 billion. Operating margin was 28% for Q3, but without the tax expense, it would have exceeded guidance of 31.5%. Analysts believe the tax issue affected Netflix shares. Q4 revenue forecast is $11.96 billion, with $5.45 EPS. Subscription fees are expected to drive revenue growth. “Stranger Things” final season and NFL games will boost Q4 momentum.

Read more at Yahoo Finance: Netflix shares drop as Brazilian tax dispute hits earnings