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ETFs to Click on Netflix's Blowout Q4 Subscriber Growth
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Netflix (NFLX - Free Report) cheered investors after it reported fourth-quarter 2022 results after the closing bell on Thursday. The world's largest video streaming company easily surpassed the subscriber growth numbers but missed earnings estimates.
Driven by solid subscriber growth, shares of Netflix climbed 7.1% in after-hours trading. Investors could easily tap the strength through ETFs with the largest allocation to this streaming giant. These funds — MicroSectors FANG+ ETN (FNGS - Free Report) , ProShares Nasdaq-100 Dorsey Wright Momentum ETF (QQQA - Free Report) , Invesco Dynamic Media ETF , First Trust S-Network Streaming & Gaming ETF (BNGE - Free Report) and Pacer BioThreat Strategy ETF (VIRS - Free Report) — seem compelling choices to play the Q4 strength.
Q4 Earnings in Detail
The company reported earnings per share of 12 cents, missing the Zacks Consensus Estimate of 47 cents and decreasing from $1.33 in the year-ago quarter. Revenues rose 1.9% year over year to $7.85 billion and were on par with the Zacks Consensus Estimate.
Netflix added 7.66 million subscribers in the fourth quarter, well ahead of the company’s expectations of 4.5 million additions. This is especially thanks to a strong slate of new programs, which attracted millions of new viewers. Television series “Wednesday,” the docuseries “Harry and Meghan” as well as Rian Johnson’s film “Glass Onion” were the most popular among content during the quarter. The launch of the cheaper ad-supported subscription plan, which went live in early November, also drove subscriber growth (read: 3 Reasons Why Tech ETFs May Rebound in 2023).
Netflix had a total of 230.75 million subscribers worldwide at the end of 2022, below its previous target of 227.59 million and up 4% year over year.
The streaming giant, which will no longer provide specific guidance on new subscriber additions, said it sees a "modest" increase in new additions, with earnings of $2.82 per share and revenues of $8.17 billion for the first quarter of 2023. The Zacks Consensus Estimate is pegged at $8.17 billion for revenues and $2.97 for earnings per share.
MicroSectors FANG+ ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar-weighted index, designed to provide exposure to a group of the highly traded growth stocks of next-generation technology and tech-enabled companies. It holds 10 stocks in its basket in equal proportion, with the Netflix share coming in at 10%.
MicroSectors FANG+ ETN has accumulated $50.3 million in its asset base and charges 58 bps in annual fees. It trades in a paltry volume of 20,000 shares a day on average and has a Zacks ETF Rank #3 (Hold) (read: Tesla Delivers Record Q4 But Misses View: ETFs in Focus).
ProShares Nasdaq-100 Dorsey Wright Momentum ETF is the first ETF focusing on select Nasdaq-100 stocks identified as having the greatest potential to outperform. It follows the Nasdaq-100 Dorsey Wright Momentum Index and holds 21 stocks in its basket, with Netflix occupying the third spot at 5.9%.
ProShares Nasdaq-100 Dorsey Wright Momentum ETF has managed assets worth $11 million and trades in an average daily volume of 3,000 shares. It charges 58 bps in annual fees.
Invesco Dynamic Media ETF
Invesco Dynamic Media ETF provides exposure to companies engaged in the development, production, sale and distribution of goods or services used in the media industry by tracking the Dynamic Media Intellidex Index. It holds 31 stocks in the basket, with Netflix taking the second spot accounting for a 5.5% allocation.
Invesco Dynamic Media ETF has been able to manage $37.4 million in its asset base while seeing a lower volume of about 17,000 shares a day. It has 0.63% in expense ratio and a Zacks ETF Rank #3 with a Medium risk outlook.
First Trust S-Network Streaming and Gaming ETF (BNGE - Free Report)
First Trust S-Network Streaming & Gaming ETF offers exposure to companies in one of the following business segments, namely content streaming, e-sports, iGaming and tracks the S-Network Streaming & Gaming Index. It holds 47 stocks in its basket, with Netflix occupying the third position with a 5.2% share. Entertainment takes the largest share at 44.3%, while hotels, restaurants & leisure, and semiconductors & semiconductor equipment round off the next two spots with double-digit exposure each (see: all the Technology ETFs here).
First Trust S-Network Streaming & Gaming ETF has accumulated $3.9 million in its asset base since its inception on Jan 25, 2022, while trading in an average daily volume of 1,000 shares. It charges 70 bps in annual fees.
Pacer BioThreat Strategy ETF seeks exposure to U.S. companies that provide their goods and services to the market by accomplishing one or more of the seven index themes. It tracks the LifeSci BioThreat Strategy Index, holding 51 stocks in its basket. Netflix occupies the sixth position with 4.9% of assets.
Pacer BioThreat Strategy ETF accumulated $3.7 million in its asset base and charges 70 bps in annual fees. It trades in a paltry average daily volume of 300 shares and has a Zacks ETF Rank #3.
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ETFs to Click on Netflix's Blowout Q4 Subscriber Growth
Netflix (NFLX - Free Report) cheered investors after it reported fourth-quarter 2022 results after the closing bell on Thursday. The world's largest video streaming company easily surpassed the subscriber growth numbers but missed earnings estimates.
Driven by solid subscriber growth, shares of Netflix climbed 7.1% in after-hours trading. Investors could easily tap the strength through ETFs with the largest allocation to this streaming giant. These funds — MicroSectors FANG+ ETN (FNGS - Free Report) , ProShares Nasdaq-100 Dorsey Wright Momentum ETF (QQQA - Free Report) , Invesco Dynamic Media ETF , First Trust S-Network Streaming & Gaming ETF (BNGE - Free Report) and Pacer BioThreat Strategy ETF (VIRS - Free Report) — seem compelling choices to play the Q4 strength.
Q4 Earnings in Detail
The company reported earnings per share of 12 cents, missing the Zacks Consensus Estimate of 47 cents and decreasing from $1.33 in the year-ago quarter. Revenues rose 1.9% year over year to $7.85 billion and were on par with the Zacks Consensus Estimate.
Netflix added 7.66 million subscribers in the fourth quarter, well ahead of the company’s expectations of 4.5 million additions. This is especially thanks to a strong slate of new programs, which attracted millions of new viewers. Television series “Wednesday,” the docuseries “Harry and Meghan” as well as Rian Johnson’s film “Glass Onion” were the most popular among content during the quarter. The launch of the cheaper ad-supported subscription plan, which went live in early November, also drove subscriber growth (read: 3 Reasons Why Tech ETFs May Rebound in 2023).
Netflix had a total of 230.75 million subscribers worldwide at the end of 2022, below its previous target of 227.59 million and up 4% year over year.
The streaming giant, which will no longer provide specific guidance on new subscriber additions, said it sees a "modest" increase in new additions, with earnings of $2.82 per share and revenues of $8.17 billion for the first quarter of 2023. The Zacks Consensus Estimate is pegged at $8.17 billion for revenues and $2.97 for earnings per share.
ETFs in Focus
MicroSectors FANG+ ETN (FNGS - Free Report)
MicroSectors FANG+ ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar-weighted index, designed to provide exposure to a group of the highly traded growth stocks of next-generation technology and tech-enabled companies. It holds 10 stocks in its basket in equal proportion, with the Netflix share coming in at 10%.
MicroSectors FANG+ ETN has accumulated $50.3 million in its asset base and charges 58 bps in annual fees. It trades in a paltry volume of 20,000 shares a day on average and has a Zacks ETF Rank #3 (Hold) (read: Tesla Delivers Record Q4 But Misses View: ETFs in Focus).
ProShares Nasdaq-100 Dorsey Wright Momentum ETF (QQQA - Free Report)
ProShares Nasdaq-100 Dorsey Wright Momentum ETF is the first ETF focusing on select Nasdaq-100 stocks identified as having the greatest potential to outperform. It follows the Nasdaq-100 Dorsey Wright Momentum Index and holds 21 stocks in its basket, with Netflix occupying the third spot at 5.9%.
ProShares Nasdaq-100 Dorsey Wright Momentum ETF has managed assets worth $11 million and trades in an average daily volume of 3,000 shares. It charges 58 bps in annual fees.
Invesco Dynamic Media ETF
Invesco Dynamic Media ETF provides exposure to companies engaged in the development, production, sale and distribution of goods or services used in the media industry by tracking the Dynamic Media Intellidex Index. It holds 31 stocks in the basket, with Netflix taking the second spot accounting for a 5.5% allocation.
Invesco Dynamic Media ETF has been able to manage $37.4 million in its asset base while seeing a lower volume of about 17,000 shares a day. It has 0.63% in expense ratio and a Zacks ETF Rank #3 with a Medium risk outlook.
First Trust S-Network Streaming and Gaming ETF (BNGE - Free Report)
First Trust S-Network Streaming & Gaming ETF offers exposure to companies in one of the following business segments, namely content streaming, e-sports, iGaming and tracks the S-Network Streaming & Gaming Index. It holds 47 stocks in its basket, with Netflix occupying the third position with a 5.2% share. Entertainment takes the largest share at 44.3%, while hotels, restaurants & leisure, and semiconductors & semiconductor equipment round off the next two spots with double-digit exposure each (see: all the Technology ETFs here).
First Trust S-Network Streaming & Gaming ETF has accumulated $3.9 million in its asset base since its inception on Jan 25, 2022, while trading in an average daily volume of 1,000 shares. It charges 70 bps in annual fees.
Pacer BioThreat Strategy ETF (VIRS - Free Report)
Pacer BioThreat Strategy ETF seeks exposure to U.S. companies that provide their goods and services to the market by accomplishing one or more of the seven index themes. It tracks the LifeSci BioThreat Strategy Index, holding 51 stocks in its basket. Netflix occupies the sixth position with 4.9% of assets.
Pacer BioThreat Strategy ETF accumulated $3.7 million in its asset base and charges 70 bps in annual fees. It trades in a paltry average daily volume of 300 shares and has a Zacks ETF Rank #3.