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Netflix (NFLX - Free Report) reported strong second-quarter 2025 results after the closing bell on Thursday. The world's largest video-streaming company outpaced earnings estimates but slightly missed on revenues. It raised its full-year revenue guidance. Shares of Netflix were down less than 1% in after-market hours.

Investors seeking to tap the opportune moment should invest in ETFs with the largest allocation to this streaming giant. These funds include First Trust Dow Jones Internet Index Fund (FDN - Free Report), FT Vest Dow Jones Internet & Target Income ETF (FDND - Free Report), MicroSectors FANG+ ETN (FNGS - Free Report), Communication Services Select Sector SPDR Fund (XLC - Free Report), and Invesco Next Gen Media and Gaming ETF (GGME - Free Report).

Q2 Earnings in Detail

The company reported earnings per share of $7.19, which strongly outpaced the Zacks Consensus Estimate of $7.07 and the year-ago earnings of $4.88. This marks Netflix’s sixth-straight quarterly earnings beat, even though the company no longer posts subscriber numbers. Revenues rose 16% year-over-year to $11.08 billion and were slightly below the consensus estimate of $11.09 billion. 

The company remains unscathed by the ongoing tariff chaos, as the entertainment industry demonstrates its resilience in tough economic times. Netflix's low-cost advertising-supported service plan should provide it with greater resilience if the macroeconomic climate worsens.

The robust results were driven by popular Netflix programs such as Squid Game, Sirens, Ginny & Georgia, The Eternaut, and Secrets We Keep, as well as hot movies such as Tyler Perry's Straw and Exterritorial.

Netflix is optimistic heading into the second half of the year, with a standout slate. The upcoming quarters boast a robust lineup, including the second season of Wednesday, the Stranger Things finale, the Canelo-Crawford live boxing match, Adam Sandler’s Happy Gilmore 2, Kathryn Bigelow’s A House of Dynamite, and Guillermo del Toro’s Frankenstein.

For the third quarter, Netflix expects revenues to hit $11.53 billion and earnings per share to be $6.87. The guidance is above the Zacks Consensus Estimate of $11.29 billion for revenues and $6.56 for earnings per share.

The streaming video giant raised its full-year revenue guidance, citing strong subscriber growth and ad sales momentum. It expects revenues to be in the range of $44.8-$45.2 billion, up from $43.5-$44.5 billion. The company launched its in-house ad tech platform on April 1, with international expansion beginning this quarter. Management expects advertising revenue growth to double in 2025, signaling confidence in this relatively new business segment.

ETFs in Focus

Provided below is a brief look at the previously-mentioned ETFs.

First Trust Dow Jones Internet Index Fund (FDN - Free Report)

First Trust Dow Jones Internet Index Fund follows the Dow Jones Internet Composite Index, giving investors exposure to the broad Internet industry. It holds about 40 stocks in its basket, with Netflix occupying the second spot at 10%.

The fund is the most popular and liquid ETF in the broad technology space, with AUM of $7.2 billion and an average daily volume of around 268,000 shares. The ETF charges 49 bps in fees per year, and it has a Zacks ETF Rank #1 (Strong Buy) rating with a High risk outlook. 

FT Vest Dow Jones Internet & Target Income ETF (FDND - Free Report)

FT Vest Dow Jones Internet & Target Income ETF is an actively managed fund that invests primarily in U.S. exchange-traded equity securities intended to track the Dow Jones Internet Composite Index. It utilizes an "option strategy" consisting of writing (selling) U.S. exchange-traded call options on the Nasdaq-100 Index, or ETFs that track the Nasdaq-100 Index.

It holds 41 stocks in its basket, with Netflix occupying the second position at 10% share. The ETF has accumulated $7 million in its asset base, and it trades in an average daily volume of about 3,000 shares. It charges 75 bps in annual fees.

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. It is 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 Netflix’s share coming in at 10%.

The product has accumulated $483.3 million in its asset base, and it charges 58 bps in annual fees. It trades in a moderate volume of 104,000 shares a day on average, and has a Zacks ETF Rank #3 (Hold) rating.

Communication Services Select Sector SPDR Fund (XLC - Free Report)  

Communication Services Select Sector SPDR Fund offers exposure to companies from telecommunication services, media, entertainment, and interactive media & services and has accumulated $23.5 billion in its asset base. It follows the Communication Services Select Sector Index and holds 23 stocks in its basket, with Netflix occupying the third position at 8.4% share.

The fund charges 8 bps in annual fees, and it trades in an average daily volume of 6 million shares. It has a Zacks ETF Rank #2 (Buy) rating.

Invesco Next Gen Media and Gaming ETF (GGME - Free Report)  

Invesco Next Gen Media and Gaming ETF offers exposure to companies with significant exposure to technologies or products that contribute to future media through direct revenues. It tracks the STOXX World AC NexGen Media Index, holding 93 stocks in its basket. Netflix is the third firm, accounting for 7.7% of the the funds assets.

The ETF has amassed $148.1 million in its asset base, and it charges 61 bps in annual fees. It trades in an average daily volume of 7,000 shares, and it has a Zacks ETF Rank #3 (Hold) rating.

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