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ETFs in Spotlight as Netflix Shares Slide Despite Beating Q4 Earnings
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Key Takeaways
Netflix beat Q4 revenue and earnings estimates but shares fell on softer Q1 guidance.
NFLX crossed 325 million paid memberships, driven by pricing, ads growth and strong global demand.
ETFs such as FNGS offer diversified exposure after the post-earnings stock pullback.
Netflix (NFLX - Free Report) recently reported impressive fourth-quarter 2025 results after the closing bell on Jan. 20, 2026. The world’s largest streaming service provider beat both its top and bottom-line estimates and crossed the 325 million paid membership milestone during the quarter.
However, despite the earnings beat, NFLX’s shares saw a pullback following its quarterly release, most likely due to softer first-quarter 2026 guidance compared with analysts’ expectations, as well as margin compression. Additionally, the company’s announcement that it would pause its share buyback program to accommodate the Warner Bros. acquisition may have weighed on investor sentiment, causing the stock to fall 1.9% yesterday.
This pullback may offer a golden opportunity for exchange-traded fund (ETF) investors seeking diversified exposure to the world’s leading streaming powerhouse. This is because ETFs provide a balanced way to capture Netflix’s long-term growth potential while hedging against the volatility that often follows individual stock-related disappointments.
These funds include First Trust Dow Jones Internet Index Fund (FDN - Free Report) , MicroSectors FANG+ ETN (FNGS - Free Report) and Communication Services Select Sector SPDR Fund (XLC ).
But before diving into the specifics of these ETFs, let us dig into NFLX’s overall fourth-quarter performance.
A Brief Analysis of NFLX’s Q4 Results
Netflix’s fourth-quarter 2025 earnings beat the Zacks Consensus Estimate by 1.8%. Its revenues also surpassed the consensus mark by 0.8%.
On a year-over-year basis, the company’s fourth-quarter results reflected improvement on both top and bottom-line counts. Stronger-than-forecasted membership growth, higher subscription pricing, and increased advertising revenues were the primary growth catalysts behind NFLX’s better-than-expected results.
Regionwide, NFLX registered double-digit growth in revenues (year over year) from all regions, including UCAN (United States and Canada) (up 18%), EMEA (Europe, Middle East and Africa) (18%), Latin America (15%) and Asia-Pacific (17%).
To continue boosting viewership, Netflix aims to work with a broader set of creators and introduce new programming formats, such as video podcasts, building on initiatives already launched through partnerships with Spotify/The Ringer, iHeartMedia, and Barstool Sports.
The company has launched the next phase of games evolution in the first quarter of 2026, with its cloud-delivered TV-based party games, including Boggle, Pictionary, Lego Party and Tetris, to roughly one-third of its members.
Looking ahead, Netflix remains optimistic about its 2026 performance, supported by a standout slate. The year features a robust lineup, including Bridgerton Season 4, The Night Agent Season 3, new scripted series such as Something Very Bad Is Going to Happen and Man on Fire, as well as unscripted shows like the third season of America’s Sweethearts: Dallas Cowboys Cheerleaders and the series finale of Queer Eye.
It also features an expansive film lineup throughout the year, including People We Meet on Vacation, The Rip, and Enola Holmes Season 3.
The company aims to pursue new initiatives like live streaming, including events like the World Baseball Classic in Japan.
ETFs in Focus
First Trust Dow Jones Internet Index Fund (FDN - Free Report)
This fund, with net assets worth $7.68 billion, provides exposure to 41 companies that come from the broad Internet industry. Of these, Netflix takes the third spot, accounting for an 8.12% share.
FDN has rallied 10.7% over the past year and charges 49 basis points (bps) in fees.
This fund, with a market cap worth $487.1 million, provides exposure to 10 highly-traded growth stocks of next-generation technology and tech-enabled companies. Of these, Netflix takes the eighth spot, accounting for a 9.28% share.
FNGS has rallied 18.6% over the past year and charges 58 bps in fees.
Communication Services Select Sector SPDR Fund (XLC - Free Report)
This fund, with net assets worth $26.46 billion, provides exposure to 23 companies from telecommunication services, media, entertainment and interactive media & services industries. Of these, Netflix takes the fourth spot, accounting for a 5.28% share.
XLC soared 23% during 2025 and charges 8 bps in fees.
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ETFs in Spotlight as Netflix Shares Slide Despite Beating Q4 Earnings
Key Takeaways
Netflix (NFLX - Free Report) recently reported impressive fourth-quarter 2025 results after the closing bell on Jan. 20, 2026. The world’s largest streaming service provider beat both its top and bottom-line estimates and crossed the 325 million paid membership milestone during the quarter.
However, despite the earnings beat, NFLX’s shares saw a pullback following its quarterly release, most likely due to softer first-quarter 2026 guidance compared with analysts’ expectations, as well as margin compression. Additionally, the company’s announcement that it would pause its share buyback program to accommodate the Warner Bros. acquisition may have weighed on investor sentiment, causing the stock to fall 1.9% yesterday.
This pullback may offer a golden opportunity for exchange-traded fund (ETF) investors seeking diversified exposure to the world’s leading streaming powerhouse. This is because ETFs provide a balanced way to capture Netflix’s long-term growth potential while hedging against the volatility that often follows individual stock-related disappointments.
These funds include First Trust Dow Jones Internet Index Fund (FDN - Free Report) , MicroSectors FANG+ ETN (FNGS - Free Report) and Communication Services Select Sector SPDR Fund (XLC ).
But before diving into the specifics of these ETFs, let us dig into NFLX’s overall fourth-quarter performance.
A Brief Analysis of NFLX’s Q4 Results
Netflix’s fourth-quarter 2025 earnings beat the Zacks Consensus Estimate by 1.8%. Its revenues also surpassed the consensus mark by 0.8%.
On a year-over-year basis, the company’s fourth-quarter results reflected improvement on both top and bottom-line counts. Stronger-than-forecasted membership growth, higher subscription pricing, and increased advertising revenues were the primary growth catalysts behind NFLX’s better-than-expected results.
Regionwide, NFLX registered double-digit growth in revenues (year over year) from all regions, including UCAN (United States and Canada) (up 18%), EMEA (Europe, Middle East and Africa) (18%), Latin America (15%) and Asia-Pacific (17%).
To continue boosting viewership, Netflix aims to work with a broader set of creators and introduce new programming formats, such as video podcasts, building on initiatives already launched through partnerships with Spotify/The Ringer, iHeartMedia, and Barstool Sports.
The company has launched the next phase of games evolution in the first quarter of 2026, with its cloud-delivered TV-based party games, including Boggle, Pictionary, Lego Party and Tetris, to roughly one-third of its members.
Looking ahead, Netflix remains optimistic about its 2026 performance, supported by a standout slate. The year features a robust lineup, including Bridgerton Season 4, The Night Agent Season 3, new scripted series such as Something Very Bad Is Going to Happen and Man on Fire, as well as unscripted shows like the third season of America’s Sweethearts: Dallas Cowboys Cheerleaders and the series finale of Queer Eye.
It also features an expansive film lineup throughout the year, including People We Meet on Vacation, The Rip, and Enola Holmes Season 3.
The company aims to pursue new initiatives like live streaming, including events like the World Baseball Classic in Japan.
ETFs in Focus
First Trust Dow Jones Internet Index Fund (FDN - Free Report)
This fund, with net assets worth $7.68 billion, provides exposure to 41 companies that come from the broad Internet industry. Of these, Netflix takes the third spot, accounting for an 8.12% share.
FDN has rallied 10.7% over the past year and charges 49 basis points (bps) in fees.
MicroSectors FANG+ ETN (FNGS - Free Report)
This fund, with a market cap worth $487.1 million, provides exposure to 10 highly-traded growth stocks of next-generation technology and tech-enabled companies. Of these, Netflix takes the eighth spot, accounting for a 9.28% share.
FNGS has rallied 18.6% over the past year and charges 58 bps in fees.
Communication Services Select Sector SPDR Fund (XLC - Free Report)
This fund, with net assets worth $26.46 billion, provides exposure to 23 companies from telecommunication services, media, entertainment and interactive media & services industries. Of these, Netflix takes the fourth spot, accounting for a 5.28% share.
XLC soared 23% during 2025 and charges 8 bps in fees.