Ahead of Earnings, Traders Can Tune Into These Netflix ETFs
Sentiment Analysis
Even with the Warner Bros. Discovery (WBD) acquisition out of its hair — leaving Paramount Skydance (PSKY) to hold the bag — Netflix, Inc. (NFLX) is struggling this year. Shares of the streaming entertainment giant are languishing and have been faltering over the past several months despite markets applauding the decision to not pursue Warner Bros. So with Netflix stepping into the earnings confessional Thursday after the close of U.S. markets, it’s safe to say that this will be a widely watched report. It could also spell opportunity with the Direxion Daily NFLX Bull 2X Shares (NFXL) , or its bearish relative, the Direxion Daily NFLX Bear 1X Shares (NFXS) . NFLX attempts to deliver 200% of the daily performance of this communication services stock, while the bearish NFXS seeks returns that correspond with the stock’s daily inverse performance.
Analysts expect Netflix to post per-share earnings of 79 cents, up from 72 cents in the same period last year. One of These Direxion ETFs Could Stream Higher Either NFXL or NFXS could be in the spotlight following the Netflix earnings update, especially if it includes the streaming giant’s usual commentary around customer subscriptions.
“Netflix’s streaming dominance is under greater threat than when it was establishing its position and charging relatively low prices,” noted Morningstar analyst Matthew Dolgin . “With many subscription streaming platforms offering popular content, we don’t believe consumers will have the financial willingness or ability to subscribe to all of them, meaning Netflix will need to continue offering a robust lineup of attractive programming to maintain its position. This will require significant investment and careful consideration of pricing changes. Despite our view that Netflix will remain at the top, it will have to compete more than it has historically.”
Source: ETF Trends
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