Netflix missed the earnings target set by stock market analysts during the video streamer’s latest quarter, a letdown that the company blamed on a tax dispute in Brazil.

Looking ahead to the fourth quarter, Netflix expects its growth to continue, calling for revenue to increase to 16.7% to $11.96 billion. It also sees $5.45 at EPS, reflecting higher content spend in the fourth quarter. Those figures compared favorably with the consensus at $11.9 billion in revenue and $5.43 in EPS.

The Dow Jones index drops Wednesday while Netflix dives on an earnings miss. Tesla earnings are due after the close.

Netflix Inc. (NFLX.O) missed Wall Street's third-quarter profit projections due to an unexpected tax bill in Brazil.

Netflix, Inc. (NASDAQ:NFLX) is in the spotlight Tuesday ahead of third-quarter earnings after the market close. Here's what you need to know.

Taken together, it’s likely that Netflix’s soaring valuation has already priced in outsized growth expectations stemming from its core streaming and emerging ad business. Coupled with the weakening macro backdrop, it’s likely the stock’s near-term risk profile remains skewed to the downside – an unattractive setup ahead of earnings.

Netflix (NASDAQ:NFLX) shares are tumbling almost 9% at the market open following yesterday’s third-quarter earnings report. Although revenue rose 17% year-over-year to $9.8 billion, meeting management’s guidance and Wall Street expectations,

Netflix (NFLX) reports third quarter earnings after the bell on Tuesday, with Wall Street expecting revenue at $11.2 billion and earnings per share (EPS) of $6.94. Yahoo Finance Senior Reporter Allie Canal outlines the details on Market Domination Overtime.

It's usual that for shares to perform so well, the underlying business reports financial results that come up well ahead of expectations. This is precisely what Netflix has done. When the company reported Q1 and Q2 results, it beat Wall Street estimates on both the top and bottom lines.