Instant Reaction: Netflix Says Tax Dispute Hurt Solid Quarter

Netflix said a tax dispute with Brazil cut into third-quarter earnings, marring results that otherwise fell in line with Wall Street estimates.  The world’s most valuable entertainment company posted quarterly operating income of $3.24 billion, according to a statement Tuesday, about $400 million below its own forecast and analysts’ estimates. The company’s outlook for the current quarter is largely in line with Wall Street projections. Netflix had to pay about $619 million to settle a multiyear tax dispute with Brazilian authorities going back to 2022. The company had identified the potential risk in previous filings – but not in its earnings guidance — and said it would have beaten forecasts if not for the expense. Future payments will be smaller.“We don’t expect this matter to have a material impact on future results,” the company said.For instant reaction and analysis, Bloomberg Businessweek hosts Carol Massar and Tim Stenovec speak with: Bloomberg News Media and Entertainment Editor Felix Gillette Mark Douglas, President & CEO of MNTN Bloomberg Intelligence Senior Media Analyst Geetha Ranganathan See omnystudio.com/listener for privacy information.

Bloomberg’s Ed Ludlow discusses OpenAI’s secretive project to train its artificial intelligence to build financial models and what that could mean for junior bankers. Plus, President Trump announced a deal with Australia on rare earths to counter China's dominance. And shares of Warner Bros. Discovery jumped after the company said it has expanded a strategic review of the business to maximize shareholder value.See omnystudio.com/listener for privacy information.

Bloomberg’s Caroline Hyde and Ed Ludlow discuss the impact of an outage at Amazon Web Services, causing widespread disruption. Plus, President Trump lists rare earths among his top priorities as the US and China resume trade talks. And IBM and Groq partner up to provide ultra-high-speed, low latency AI capabilities to enterprise customers.See omnystudio.com/listener for privacy information.

Make sense of the world with one essential conversation, every week. Mishal Husain, one of Britain's best interviewers, brings her signature blend of curiosity and tenacity to weekly conversations with world leaders, business titans, and cultural icons, revealing who they really are and how they see the world changing around them.Follow the podcast wherever you listen, so you don't miss an episode.swap.fm/l/P1iueaQy5gndhEheLwN3See omnystudio.com/listener for privacy information.

Bloomberg Tech's Caroline Hyde discusses the growing China-US trade tensions as President Donald Trump gets set to meet China's Xi Jinping. Plus, billions of dollars in the crypto markets disappear as altcoins fall. And, Apple gets into touch with plans to revamp its MacBook lineup with touch displays.See omnystudio.com/listener for privacy information.

Bloomberg’s Caroline Hyde and Ed Ludlow discuss TSMC's third-quarter results, which beat expectations and provided a positive outlook buoyed by strong AI demand. Plus, China unveils export controls on its rare-earth supply chain, sparking a global pushback. And the head of Apple’s ChatGPT-like search effort leaves in another blow to the company’s AI ambitions.See omnystudio.com/listener for privacy information.

Bloomberg’s Caroline Hyde breaks down ASML’s earnings as the AI boom continues to fuel demand for its cutting-edge chip-making machines. Plus, deals to develop data centers just keep coming, among them Microsoft and UK startup NScale inking a fourth deal. And Apple updates its top-of-the-line iPad Pro and other products with its own in-house chip.See omnystudio.com/listener for privacy information.

Bloomberg’s Caroline Hyde and Ed Ludlow break down the escalating trade tensions between China, the US... and now Europe too and what it means for the tech sector. Plus, concerns of an AI bubble grow louder among global fund managers and Instagram's Global Director of Policy on how the app is making some changes with tighter content restrictions for teenagers.See omnystudio.com/listener for privacy information.

Bloomberg’s Caroline Hyde breaks down the latest deal by OpenAI with a chipmaker, this time with Broadcom. Plus, tech stocks bounce back as President Donald Trump signaled openness to a deal with China amid the latest trade showdown. And Warner Brothers Discovery rejects a takeover offer from Paramount Skydance, deeming it too low, according to sources.See omnystudio.com/listener for privacy information.

Bloomberg Tech's Caroline Hyde and Ed Ludlow are live in LA for Bloomberg Screentime 2025, speaking with celebrities, entrepreneurs and leaders across the media, gaming and streaming landscape. NPR CEO Katherine Maher discusses the state of media under the Trump administration, Twitch CEO Dan Clancy and Scopely COO Eunice Lee weigh in on the gaming landscape, while streamer Imane Anys - aka “Pokimane” - dives into the business of streaming and building a following.See omnystudio.com/listener for privacy information.