Netflix shares dropped seven percent in extended trading Wednesday after the company posted a third-quarter earnings miss after the bell Tuesday.
A continuing $600 million dispute with Brazilian tax authorities has been cited for the weaker-than-estimated results. The dip also comes amid ongoing backlash by viewers and users over transgender content promoted for children by the streaming giant.
Elon Musk for one has taken took to X to urge the public to cancel their Netflix subscriptions “for the health” of their children.
The results broke Netflix’s six-quarter streak of posting a profit that eclipsed analysts’ projections, despite modest growth in its ads business. The company did post a profit, though less than expected.
The Guardian overview of the results outcome pointed to other factors at play for the streamer – now and into the future:
The Los Gatos, California, company cited an unexpected $619m expense tied to the Brazilian tax dispute for the third-quarter earnings shortfall while hailing its lineup of distinctive TV series and films for keeping its audience engaged and delivering a mix of subscriber fees and increased ad sales that helped it deliver revenue that matched analyst forecasts.
Netflix’s earnings came after Warner Bros Discovery announced it may sell all or part of its holdings on Tuesday, which include HBO, DC Studios and CNN. Analysts speculated that Netflix may join the bidders looking to grab a piece of the storied production house.
As Breitbart News reported, Netflix is being assailed by critics attacking its children’s programs and its embrace of artificial intelligence (AI).
Tennessee Republican Congressman Tim Burchett has already called for Netflix executives to explain the massive amounts of “demonic” transgender content in its children’s offerings.
Burchett and House Oversight Committee Chair James Comer (R, KY) have presented the streamer with a letter calling executives to a committee hearing after learning of the cartoon series called, Dead End: Paranormal Park, which was aimed at children under 13, featured a transgender main character.
“We need to get them for the committee and ask them what their intentions are with this and if, in fact, they realize what the heck is going on,” Rep. Burchett told Fox News.
“If they don’t come in voluntarily, we ought to subpoena them. Because this is a serious issue. It affects the mental health of our young people, the moral degradation of our society,” Burchett added. “And I would love to sit across the table and ask them some questions.”
Dead End is not the only children’s series on Netflix featuring transgender and LGBTQI+ characters, as Breitbart has noted.
Others include, Strawberry Shortcake: Berry in the Big City, The Baby-Sitters Club, Monster High, and Transformers: Earthspark, all of which pushed the radical gay agenda.
Burchett wants Netflix executives to explain what controls they have on their service for parents.
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