Netflix experienced a significant drop in its share price on Tuesday following the release of its quarterly earnings report, which revealed profits falling short of market expectations. The streaming giant reported a profit of $2.5 billion on revenue of $11.5 billion for the recently concluded quarter. However, the company faced a substantial $619 million expense due to an ongoing tax dispute with Brazilian authorities. Netflix CFO Spencer Neumann clarified that this expense was not an income tax but rather a cost associated with operating in Brazil, potentially affecting other companies as well. Neumann attributed the timing of this expense to a recent court ruling involving another company in Brazil. Consequently, Netflix shares plummeted over six percent in after-market trading, settling just below $1,163. Despite this setback, Netflix highlighted strong viewership in the UK and the US, driven by popular content such as ‘KPop Demon Hunters’ and the final season of ‘Stranger Things.’ The company also expressed optimism about its ad-supported membership tier, which saw its best sales quarter to date. Additionally, Netflix hinted at potential acquisitions, including Warner Brothers Discovery, as it continues to focus on organic growth and strategic opportunities.