Netflix has reported its quarterly earnings, revealing a significant miss on estimates that has led to a notable drop in its stock price. Despite showing a robust revenue growth of 17%, reaching $11.5 billion, the company attributed its earnings miss primarily to a tax dispute in Brazil. This dispute has impacted its operating profit, causing shares to sink after the announcement. The streaming giant is focusing on expanding its ad business, which has seen substantial growth, as it faces challenges including rising attention spans and content investment concerns. Investors remain cautious as Netflix navigates these hurdles, with a largely muted market reaction expected amid ongoing discussions about its future growth and valuation risks.