As Starfleet Commander Netflix gears up to unveil its third-quarter performance warp on October 17th, investors are strapping in for a potentially thrilling ride through the cosmos of streaming data and financial metrics.
An Orb of Earning Whispers
The constellation aligns favorably with Netflix, exhibiting an Earnings ESP of +1.37% and donning a Zacks Rank #2 (Buy). Like a well-choreographed spacecraft maneuver, this combination historically enhances the probability of an earnings triumph. The absence of earnings estimate revisions over the past month signals a stable trajectory, with anticipated earnings growth of 35.9% and revenue lift-off standing at 14.3% for the upcoming quarter.
With a stellar earnings surprise history, averaging 6.15% over the last four quarters, Netflix finds itself orbiting among the Zacks universe’s top 41% of industries.
Unveiling the Price, Consensus, and EPS Surprise
As voyagers direct their telescopes towards the horizon, Netflix’s average brokerage recommendation rating orbits at 1.89 out of 5, reflecting the unison of opinions from 40 brokerage firms. A celestial symphony of recommendations positions 23 as Strong Buy and two as Buy, dominating the star-studded realm with conviction. Forecasting telescopes predict an average target price of $715.75 for Netflix, with a voyage spanning from $545.00 to $900.00.
The Ether of Growth Prospects
Netflix is on the brink of expansion, propelled by a paid-sharing initiative and advertising revenue stream. Analysts forecast a stellar trajectory, believing Netflix’s crackdown on sharing will attract a cohort of fresh viewers to its nebula. Venturing into live and sports programming, Netflix aims to broadcast National Football League games this festive season, weaving a captivating narrative within the realm of traditional television.
The introduction of live events into its streaming galaxy is anticipated to reduce subscriber attrition and draw in new stargazers, fostering a meteoric rise in viewership.
Valuation Constellations
Mirroring distant galaxies, Netflix shares glisten with a P/E ratio of 37.81, eclipsing the industry standard of 10.60. The celestial orbs align favorably as the company boasts a Growth Score of B, hinting at an accelerating ascent. The luminance of this performance helps justify Netflix’s cosmically high valuation.
The Luminary ETFs
MicroSectors FANG+ ETN (FNGS)
Embarking on a trajectory mirroring the NYSE FANG+ Index, the MicroSectors FANG+ ETN provides a snapshot of highly traded growth stocks of next-generation technology entities. Holding 10 equities in equal proportion, with Netflix comprising 10%, this ETN has amassed $380 million in assets. Trading with moderate volume and charging 58 bps in annual fees, it holds a Zacks ETF Rank #3 (Hold), awaiting further celestial alignment.
Invesco Next Gen Media and Gaming ETF (GGME)
Offering an odyssey through media and gaming futures, the Invesco Next Gen Media and Gaming ETF navigates an index comprising companies at the helm of innovative technologies. With Netflix steering the ship at 8% of assets, this ETF has charted $41.1 million in assets and charges 60 bps in annual fees.
First Trust Dow Jones Internet Index Fund (FDN)
Blazing a trail through the expansive internet cosmos, the First Trust Dow Jones Internet Index Fund surveys a constellation of 41 stocks, with Netflix as a notable celestial body at 7.8%. Possessing vast liquidity and popularity in the technological expanse, this fund carries an AUM of $6 billion and a Zacks ETF Rank #1 (Strong Buy), orbiting with a high-risk outlook.
Communication Services Select Sector SPDR Fund (XLC)
Navigating the realms from telecommunication to media, the Communication Services Select Sector SPDR Fund has amassed $18.2 billion in assets. With Netflix anchoring 6.1% of its stellar holdings, this fund extends an invitation to investors to explore a universe of communication and entertainment opportunities.
Exploring the First Trust S-Network Streaming & Gaming ETF
As the financial markets ebb and flow like a relentless tide, investors are constantly seeking the next big wave to ride. Enter the First Trust S-Network Streaming & Gaming ETF – a vessel that navigates the vast seas of the entertainment industry with a keen eye for opportunity.
A Glimpse into the Portfolio
A substantial 42% of this ETF’s portfolio is anchored in interactive media & services. Entertainment and media sectors make up significant portions of the allocation, paving the way for potential growth and innovation.
The Communication Services Select Sector SPDR Fund
The Communication Services Select Sector SPDR Fund, with its 9 bps annual fee and a robust trading volume of 3.6 million shares per day, offers investors a chance to dip their toes in the ETF waters. Sporting a Zacks ETF Rank #2, it beckons with promises of fruitful returns.
Exploring Holdings and Exposure
The First Trust S-Network Streaming & Gaming ETF is not one to shy away from high seas. With 45 stocks in its basket, it keeps a steady course by tracking the S-Network Streaming & Gaming Index. As Netflix takes the fourth spot in its assets, comprising 4.9% of the holdings, the ETF boasts a diversified lineup with entertainment leading the charge at 44.9%.
The Financial Horizon
Accumulating $3.9 million in assets, the First Trust S-Network Streaming & Gaming ETF may seem like a modest raft in the vast ocean of investments, but its average daily trading volume of about 3,000 shares promises liquidity for those looking to set sail. With an annual fee of 70 bps, this vessel beckons investors to embark on a journey towards potential profits.
Ready to Set Sail?
As you contemplate your investment strategies, consider the captivating allure of the First Trust S-Network Streaming & Gaming ETF. In a market teeming with possibilities, this ETF could be the lighthouse guiding your financial ship towards the shores of prosperity.