Netflix stock dropped 10% on an earnings miss. Here's why smart investors might see the drop as a buying opportunity.

Looking ahead, the company expects momentum to continue. Netflix guided for 2025 revenue of roughly $45.1 billion, or about 16% growth. However, it reduced its 2025 operating margin outlook to about 29%, down from 30% previously, reflecting the Brazil expense.

Netflix, Inc. stock dropped after a Brazilian tax expense hit margins, but revenue and engagement remain strong. Click for more on NFLX Q3 earnings.

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

A Fool since 2019, and a graduate of Cal State LA with a B.S. in Finance and M.A. in Economics. Parkev is an adjunct professor of Finance and enjoys reading about financial and economic history. You'll often find him writing about stocks in the consumer goods and technology sectors.

Analysts stuck to ratings and share price targets after a Brazil tax dispute hit the bottom line and stock price, with some waiting for year-end results, while at least one tells investors to "buy the dip.