
Netflix Gears Up for Q2 Earnings Release: ETFs in Focus
Netflix shares have risen about 29% over the past three months, outperforming the broader industry's growth of 25.1%. The strong trend is expected to continue, given that Netflix has a strong chance to beat earnings estimates.
As a result, ETFs with the largest allocation to this streaming giant, like First Trust Dow Jones Internet Index Fund FDN, FT Vest Dow Jones Internet & Target Income ETF FDND, MicroSectors FANG+ ETN FNGS, Communication Services Select Sector SPDR Fund XLC and Invesco Next Gen Media and Gaming ETF GGME are in focus.
Earnings Whispers
Netflix has an Earnings ESP of +1.68% and a Zacks Rank #2 (Buy). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
The online video-streaming giant saw a negative earnings revision of a penny over the past seven days for the to-be-reported quarter. It is expected to report substantial earnings growth of 44.7% and revenue growth of 15.6% for the to-be-reported quarter. The company's earnings surprise history is impressive, as it delivered an earnings surprise of 6.94% on average over the past four quarters.
Analysts Are Bullish Ahead of Earnings
Analysts are bullish on Netflix, with an average brokerage recommendation (ABR) of 1.72 made by 45 brokerage firms. Out of them, 27 are Strong Buy and three are Buy. Strong Buy and Buy, respectively, account for 60% and 6.67% of all recommendations. The average price target for Netflix comes to $1,239.18, ranging from a low of $800 to a high of $1,600 (read: Tech ETFs Hit New Highs as NVIDIA Powers Market Rally).
Some analysts raised the target price on the stock ahead of the earnings release. BMO Capital lifted the target price to $1,425 from $1,200, reflecting growing confidence in the streaming giant's near and long-term growth prospects. BMO's upward revision was driven by record-breaking viewership for "Squid Game 3," along with favorable foreign exchange trends, which are expected to boost revenue and operating income for the second quarter of 2025 and the second half of the year. The analyst also highlighted emerging artificial intelligence tailwinds that could provide multi-year benefits.
Piper Sandler also recently raised its price target on Netflix to $1,400, citing upbeat management commentary and higher revenue expectations for the third quarter of 2025. Needham also boosted its target to $1,500, highlighting the company's exceptional labor efficiency, while Wells Fargo upped the price target on the stock to $1,500 from $1,222.
Pivotal Research Group lifted the price target to $1,600 from $1,350, citing Netflix's dominant position in the subscription streaming video market.
What to Watch
The company remains unscathed by the ongoing tariff chaos as the entertainment industry shows its resilience in tough economic times. Netflix's low-cost advertising-supported subscriptions and live sports expansion will continue to fuel growth.
The streaming giant offered an upbeat outlook for the ongoing quarter on its last earnings call. It expects revenues to grow 15% year over year to $11.04 billion, while earnings per share are expected to rise 44% to $7.03.
Valuations
Netflix shares look expensive at current levels, with a P/E ratio of 49.65 versus 15.63 for the industry. However, it has a strong Growth Score of B, indicating that it is primed for more growth. This justifies its high valuation. Also, Netflix has become a popular defensive play in the current unsteady market.
ETFs in Focus
First Trust Dow Jones Internet Index Fund (FDN)
First Trust Dow Jones Internet Index Fund follows the Dow Jones Internet Composite Index, giving investors exposure to the broad Internet industry. It holds about 40 stocks in its basket, with Netflix occupying the third spot at 10.1%. First Trust Dow Jones Internet Index Fund is the most popular and liquid ETF in the broad technology space, with AUM of $7.3 billion and an average daily volume of around 250,000 shares. FDN charges 49 bps in fees per year and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
FT Vest Dow Jones Internet & Target Income ETF (FDND)
FT Vest Dow Jones Internet & Target Income ETF is an actively managed fund that invests primarily in U.S. exchange-traded equity securities intended to track the Dow Jones Internet Composite Index. It utilizes an "option strategy" consisting of writing (selling) U.S. exchange-traded call options on the Nasdaq-100 Index, or ETFs that track the Nasdaq-100 Index. It holds 41 stocks in its basket, with Netflix occupying the third position at 10.1% share. FT Vest Dow Jones Internet & Target Income ETF has accumulated $6.9 million in its asset base and trades in an average daily volume of about 3,000 shares. It charges 75 bps in annual fees.
MicroSectors FANG+ ETN (FNGS)
MicroSectors FANG+ ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar-weighted index. It is designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. It holds 10 stocks in its basket in equal proportion, with Netflix's share coming in at 10%. MicroSectors FANG+ ETN has accumulated $479.3 million in its asset base and charges 58 bps in annual fees. It trades in a moderate volume of 109,000 shares a day on average and has a Zacks ETF Rank #3 (Hold) (read: Mag 7 ETFs Surge: Will the Rally Keep Rolling?).
Communication Services Select Sector SPDR Fund (XLC)
Communication Services Select Sector SPDR Fund offers exposure to companies from telecommunication services, media, entertainment and interactive media & services and has accumulated $23.5 billion in its asset base. It follows the Communication Services Select Sector Index and holds 23 stocks in its basket, with Netflix occupying the third position at 8.5% share. Communication Services Select Sector SPDR Fund charges 8 bps in annual fees and trades in an average daily volume of 6 million shares. It has a Zacks ETF Rank #2 (Buy).
Invesco Next Gen Media and Gaming ETF (GGME)
Invesco Next Gen Media and Gaming ETF offers exposure to companies with significant exposure to technologies or products that contribute to future media through direct revenues. It tracks the STOXX World AC NexGen Media Index, holding 93 stocks in its basket. Netflix is the fourth firm, accounting for 7.9% of the GGME assets. Invesco Next Gen Media and Gaming ETF has amassed $146.3 million in its asset base and charges 61 bps in annual fees. It trades in an average daily volume of 7,000 shares and has a Zacks ETF Rank #3.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports
MicroSectors FANG+ ETN (FNGS): ETF Research Reports
Invesco Next Gen Media and Gaming ETF (GGME): ETF Research Reports

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Globe and Mail
21 minutes ago
- Globe and Mail
Why Shares of Tesla Are Surging Today
Key Points Tesla's stock struggled yesterday after a tough earnings report. CEO Elon Musk continued to tout the robotaxi business. Musk said Tesla's robotaxi fleet should be able to cover a significant portion of the U.S. by year end. These 10 stocks could mint the next wave of millionaires › One day after its stock fell due to poor second-quarter earnings results, shares of Tesla (NASDAQ: TSLA) rebounded and traded nearly 3.6% higher, as of 2:03 p.m. ET today, on renewed optimism about the company's emerging robotaxi business. Get ready, San Francisco Tesla's stock fell over 8% yesterday after the company reported second-quarter earnings that showed revenue fell 12% year over year and operating income came in 25% lower than expected. Investors knew a rough quarter was in the works earlier this month after the company reported that second-quarter deliveries declined 14% year over year. CEO Elon Musk also hinted at a "few rough quarters" ahead, especially with the sale of regulatory credits expected to continue to fall due to President Donald Trump's One Big Beautiful Bill Act. However, on the company's earnings call, Musk said that Tesla is planning to roll out more affordable electric vehicles for the public by the fourth quarter of the year. Musk also said that Tesla expects to grow Tesla's robotaxi network rapidly in the back half of the year, with half of the U.S. population able to access it by the end of 2025. I'm not sure how many investors believed that to be possible after the call, but there seems to be more optimism today after a report from Business Insider said Tesla will launch robotaxis in San Francisco this weekend. Citing an internal memo, Business Insider reported that select Tesla owners will be invited to participate in the launch and will pay for the rides. The launch will be geofenced. The valuation is still high Tesla still seems far away from having its robotaxi fleet cover half of the U.S. population, especially with driverless vehicles that don't require some form of human supervision. I could certainly end up being wrong about this, but Tesla's sky-high valuation seems to imply huge success with robotaxis, despite still being in the early innings. For this reason, I continue to avoid the stock. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of July 21, 2025


Globe and Mail
an hour ago
- Globe and Mail
Commercial Weekly Dumpster Service Rental Options by Jordan Disposal in Joplin, MO
From Main Street storefronts to busy job sites, Joplin businesses now have a smoother way to keep things clean. Jordan Disposal has expanded its weekly roll-off dumpster service to help commercial clients in Joplin toss the trash without the stress. From Main Street storefronts to busy job sites, Joplin businesses now have a smoother way to keep things clean. Jordan Disposal has expanded its weekly roll-off dumpster service to help commercial clients in Joplin toss the trash without the stress. Whether you're running a restaurant, managing a warehouse, or building something big, you shouldn't have to worry about overflowing waste or missed pickups. Jordan Disposal delivers set-it-and-forget-it waste solutions so you can stay focused on business. 'Our roots are right here in the Four-State Area, and we take pride in helping Joplin businesses run more smoothly,' said Michelle Murphy of Jordan Disposal. 'Our commercial roll off dumpsters are more than just bins — they come with dependable service, flexible scheduling, and a whole lot of local care.' Jordan Disposal's weekly commercial roll-off services are built for Joplin's real-world pace. Choose from multiple dumpster sizes, all made to handle heavy commercial use. Whether you're cleaning up construction debris or tackling regular weekly waste, Jordan's team makes it easy — no long waits, no surprise fees. Just clean service, right on time. Businesses can schedule a rental, request quotes, or explore service options directly through the website or by giving Jordan Disposal a call. For more info on commercial roll off dumpsters in the Joplin area, check out their latest updates online. Ready to take control of your waste management once and for all? Call today or request a quote online — your dumpster could be rolling in as early as tomorrow. Don't wait for the mess to pile up. Media Contact Company Name: Jordan Disposal Contact Person: Michelle Murphy Email: Send Email Phone: (417) 624-4469 Address: 1040 E Front St City: Galena State: KS Country: United States Website:


Globe and Mail
an hour ago
- Globe and Mail
Volkswagen reports first-half $1.5-billion tariff hit, looks to accelerate cost-cutting efforts
Volkswagen VWAGY reported a €1.3-billion (US$1.5-billion) first-half hit from tariffs and cut its full-year sales and profit margin forecasts in the German carmaker's first assessment of the damage from U.S. President Donald Trump's trade war. Global automakers have booked billions of dollars of losses and some have issued profit warnings due to U.S. import tariffs. The European industry is also facing stiffening competition from China, and domestic regulations aimed at speeding up the electric vehicle transition. Volkswagen, Europe's biggest carmaker, now expects this year's operating profit margin between four per cent and five per cent, compared with a previous forecast of 5.5 per cent to 6.5 per cent. Full-year sales, earlier seen up to five per cent higher, are expected to be level with the previous year. In February: Volkswagen counts on talks to avoid trade conflict after Trump imposes tariffs Volkswagen shares dropped by as much as 4.6 per cent in early Friday trade, before recovering as the day progressed. They were one per cent higher at 13:05 GMT. Investors had largely anticipated a guidance cut, after the company held off on assessing the damage of tariffs in the previous quarter, and appeared calmed by assurances that the group's luxury brands Audi and Porsche would recover next year following heavy losses in the second quarter. CEO Oliver Blume told investors the company must accelerate its cost-cutting efforts in response to the tariffs. 'We need to shift our cost efforts into high gear and accelerate implementation. After all, we cannot assume that the tariff situation is only temporary,' Blume said. Volkswagen and its competitors are pressing European trade negotiators to strike a deal to reduce a 25 per cent U.S. tariff they have faced since April. EU diplomats have indicated that the bloc could be moving towards a broad 15 per cent tariff as it seeks to avoid a threatened 30 per cent levy from Aug. 1. A deal struck between the U.S. and Japan earlier this week raised hopes for a similar agreement for Europe, boosting carmakers' shares. EU says U.S. trade deal is within reach, while approving potential countermeasures Finance chief Arno Antlitz said Volkswagen's profit margin would roughly land in the middle of its guidance with a Japan-style deal, which had a 15 per cent tariff rate. He warned, however, that the clock was ticking on finding a deal. 'We are already in July, so the longer we go into the second half of the year, the more we tend to the lower end of the guidance,' he said. Antlitz declined to comment on price increases when pressed by investors on how the company planned to protect its margins against tariffs. Volkswagen reported an operating profit of €3.8-billion in the quarter ended June 30, down 29 per cent on the previous year, citing tariffs and restructuring costs, as well as higher sales of lower-margin all-electric models. While Volkswagen was able to boost deliveries globally by 1.5 per cent in the first six months of 2025, the group saw a decline of almost 10 per cent in deliveries to the United States. Hyundai Motor sees profit decline in second quarter, warns of bigger impact from U.S. tariffs North American sales revenue accounted for 18.5 per cent of the carmaker's global sales in the first half. Car sales data for June highlighted a broader slowdown in Europe's struggling auto sector – and showed Volkswagen among the laggards as the company undergoes a major overhaul to cut over 35,000 jobs by the end of the decade. Porsche and Audi are particularly exposed to U.S. tariffs given they have no production there, and rely heavily on exports. In the second quarter, Porsche's operating result plunged by over 90 per cent to €154-million and Audi's by 64 per cent to 550-million. 'For both companies, Audi and Porsche, we are expecting that we will touch the bottom this year with positive momentum from 2026 onwards,' Blume said.