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Netflix (NFLX - Free Report) reported mixed first-quarter 2023 results after the closing bell on Tuesday. The world's largest video streaming company topped the earnings estimate while lagging on revenues. It also provided downbeat guidance.
As such, shares of Netflix initially plunged as much as 12%% in after-hours trading but recovered later to gain 1.4%. This has put ETFs with the largest allocation to this streaming giant, like MicroSectors FANG+ ETN (FNGS - Free Report) , Invesco Dynamic Media ETF , Alger 35 ETF (ATFV - Free Report) , ProShares Nasdaq-100 Dorsey Wright Momentum ETF (QQQA - Free Report) and Pacer BioThreat Strategy ETF (VIRS - Free Report) in focus.
Q1 Earnings in Detail
The company reported earnings per share of $2.88, outpacing the Zacks Consensus Estimate by 5 cents and decreasing 18% from the year-ago quarter. Revenues rose 3% year over year to $8.16 billion and were slightly below the estimate of $8.18 billion (read: Low Volatility ETFs to Play Stock Market Volatility).
Netflix added 1.75 million subscribers in the first quarter, taking the global membership to 232.50 million subscribers at the end of the quarter. The growth was fueled by a strong content slate with successful returning seasons like Outer Banks, You, Ginny & Georgia, and a big sequel film Murder Mystery 2. The lineup also included new TV series hits like The Night Agent (now the 6th most popular English language TV show ever), The Glory (the 5th most popular non-English TV show ever), Full Swing, That 90s Show, and films You People, and Luther: The Fallen Sun.
The streaming giant expects revenues to grow 3.4% to $8.2 billion and earnings per share of $2.84 for the second quarter. The Zacks Consensus Estimate is pegged at $8.44 billion for revenues and $2.91 for earnings per share.
MicroSectors FANG+ ETN is linked to the performance of the NYSE FANG+ Index, which is equal-dollar weighted and 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 the Netflix share coming in at 10% (read: 5 Tech Stocks That Powered Nasdaq ETF in the First Quarter).
MicroSectors FANG+ ETN has accumulated $61.6 million in its asset base and charges 58 bps in annual fees. It trades in a paltry volume of 54,000 shares a day on average and has a Zacks ETF Rank #3 (Hold).
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 32 stocks in the basket, with Netflix taking the fourth spot, accounting for a 5.2% allocation.
Invesco Dynamic Media ETF has been able to manage $32.5 million in its asset base while seeing a lower volume of about 3,000 shares a day. It has 0.63% expense ratio and a Zacks ETF Rank #3 with a Medium risk outlook.
Alger 35 ETF is actively managed and invests in a focused portfolio of approximately 35 holdings of primarily U.S. companies of any capitalization identified through the fundamental research as demonstrating promising growth potential. Netflix takes the fourth position with 4.8% of the total assets.
Alger 35 ETF has accumulated $9.4 million in its asset base and trades in a volume of under 500 shares on average. It charges 55 bps in annual fees from investors.
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 ninth spot at 5%.
ProShares Nasdaq-100 Dorsey Wright Momentum ETF has managed assets worth $10.5 million and trades in an average daily volume of 2,000 shares. It charges 58 bps in annual fees (read: Nasdaq-100 Enters Bull Market: ETFs to Ride on).
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 fourth position with 5.1% 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 100 shares and has a Zacks ETF Rank #3.
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ETFs to Click on Netflix's Mixed Q1 Results
Netflix (NFLX - Free Report) reported mixed first-quarter 2023 results after the closing bell on Tuesday. The world's largest video streaming company topped the earnings estimate while lagging on revenues. It also provided downbeat guidance.
As such, shares of Netflix initially plunged as much as 12%% in after-hours trading but recovered later to gain 1.4%. This has put ETFs with the largest allocation to this streaming giant, like MicroSectors FANG+ ETN (FNGS - Free Report) , Invesco Dynamic Media ETF , Alger 35 ETF (ATFV - Free Report) , ProShares Nasdaq-100 Dorsey Wright Momentum ETF (QQQA - Free Report) and Pacer BioThreat Strategy ETF (VIRS - Free Report) in focus.
Q1 Earnings in Detail
The company reported earnings per share of $2.88, outpacing the Zacks Consensus Estimate by 5 cents and decreasing 18% from the year-ago quarter. Revenues rose 3% year over year to $8.16 billion and were slightly below the estimate of $8.18 billion (read: Low Volatility ETFs to Play Stock Market Volatility).
Netflix added 1.75 million subscribers in the first quarter, taking the global membership to 232.50 million subscribers at the end of the quarter. The growth was fueled by a strong content slate with successful returning seasons like Outer Banks, You, Ginny & Georgia, and a big sequel film Murder Mystery 2. The lineup also included new TV series hits like The Night Agent (now the 6th most popular English language TV show ever), The Glory (the 5th most popular non-English TV show ever), Full Swing, That 90s Show, and films You People, and Luther: The Fallen Sun.
The streaming giant expects revenues to grow 3.4% to $8.2 billion and earnings per share of $2.84 for the second quarter. The Zacks Consensus Estimate is pegged at $8.44 billion for revenues and $2.91 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 equal-dollar weighted and 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 the Netflix share coming in at 10% (read: 5 Tech Stocks That Powered Nasdaq ETF in the First Quarter).
MicroSectors FANG+ ETN has accumulated $61.6 million in its asset base and charges 58 bps in annual fees. It trades in a paltry volume of 54,000 shares a day on average and has a Zacks ETF Rank #3 (Hold).
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 32 stocks in the basket, with Netflix taking the fourth spot, accounting for a 5.2% allocation.
Invesco Dynamic Media ETF has been able to manage $32.5 million in its asset base while seeing a lower volume of about 3,000 shares a day. It has 0.63% expense ratio and a Zacks ETF Rank #3 with a Medium risk outlook.
Alger 35 ETF (ATFV - Free Report)
Alger 35 ETF is actively managed and invests in a focused portfolio of approximately 35 holdings of primarily U.S. companies of any capitalization identified through the fundamental research as demonstrating promising growth potential. Netflix takes the fourth position with 4.8% of the total assets.
Alger 35 ETF has accumulated $9.4 million in its asset base and trades in a volume of under 500 shares on average. It charges 55 bps in annual fees from investors.
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 ninth spot at 5%.
ProShares Nasdaq-100 Dorsey Wright Momentum ETF has managed assets worth $10.5 million and trades in an average daily volume of 2,000 shares. It charges 58 bps in annual fees (read: Nasdaq-100 Enters Bull Market: ETFs to Ride on).
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 fourth position with 5.1% 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 100 shares and has a Zacks ETF Rank #3.