Netflix shares sank on Tuesday after the streaming television powerhouse reported quarterly profit that fell short of market expectations.

Netflix recorded a profit of $2.5 billion on revenue of $11.5 billion in the recently ended quarter, saying it was hit with a $619 million expense due to an ongoing dispute with Brazilian tax authorities.

Netflix said in a letter to shareholders that, absent that cost in Brazil, it would have exceeded its operating margin forecast in the quarter.

"We don’t expect this matter to have a material impact on future results," Netflix said in the letter.

Netflix shares were down more than five percent to slightly more than $1,173 in after-market trades that followed release of the earnings figures.

Netflix viewership in Britain and the US reached their hi

See Full Page