Netflix Earnings in Focus: How Traders Can Double Down or Hedge with Leveraged ETFs Before July 17

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Netflix (NFLX) reports Q2 2025 earnings on July 17th after market close, with Wall Street expecting another strong quarter from the streaming leader. The company has added 41 million subscribers over the past year, reaching nearly 302 million users across the globe as it keeps its lead in a market that gets more competitive by the day.

NFLX shares have surged about 90% over the past twelve months, crushing the S&P 500's about 12% gain and establishing Netflix as one of the strongest performers among mega-cap tech stocks. With four consecutive earnings beats under its belt, the streaming giant looks positioned for another solid report.

For active traders positioning around Netflix's typically volatile earnings moves, Direxion's Single Stock Daily Leveraged & Inverse ETFs provide tactical tools to trade the streaming leader's price swings without traditional margin requirements.

Q2 Earnings Outlook

Analysts expect Netflix to report $7.05 per share in Q2 earnings, representing a 44.5% jump from the $4.88 posted in the same quarter last year. This projection reflects continued subscriber growth and the company's new ways to make money, including its ad-supported tier and gaming initiatives.

The company's most recent quarter saw earnings of $6.61 per share, beating estimates by 16.2%. Netflix has consistently exceeded Wall Street expectations, with earnings surprises ranging from 1.7% to 16.2% over the past four quarters. Management clearly knows how to under-promise and over-deliver.

For fiscal 2025, analysts project earnings of $25.34 per share, up 27.8% from fiscal 2024. Looking further ahead, fiscal 2026 estimates call for $30.79 in earnings per share, showing sustained growth expectations.

How the Stock Has Performed

Netflix trades near $1,238, well above its 52-week low of $587 but below the peak of $1,341 hit earlier this year. The stock's remarkable run has pushed its market cap above $530 billion, making it a media heavyweight.

Wall Street likes what it sees, with 45 analysts covering the stock. Here's how they line up: 28 "Strong Buy" ratings, 3 "Moderate Buy," and 14 "Hold" ratings, giving us a consensus "Moderate Buy" rating. The average price target of $1,207.83 sits slightly below current levels, though the Street-high target of $1,600 suggests potential upside of nearly 30%.

Recent analysis points to Netflix's strong competitive position, with the company capturing 7.5% of total U.S. video viewing time, second only to YouTube. This dominant position supports the bullish thesis despite competition from Disney's streaming service, Warner Bros. Discovery's Max, and other services.

What to Watch When Netflix Reports

Here's what will move the stock when earnings hit:

• Subscriber Metrics: While Netflix no longer provides quarterly subscriber numbers, any color on user growth trends will move the stock. The company added 41 million users in 2024, and maintaining that momentum matters.
• Ad-Tier Progress: Updates on the advertising-supported subscription tier launched two years ago. This lower-priced option brings in new customers while adding ad revenue.
• Content Spending: Management's commentary on content investment and whether they're getting their money's worth. Netflix spends big on original programming to stay ahead.
• Gaming Initiatives: Progress on the company's push into games that subscribers can play on their phones to keep them engaged.
• Geographic Mix: International expansion matters most, especially in Asia and emerging markets with plenty of room to grow.
• Pricing Power: Any signals about raising prices or changing subscription tiers could move the needle on how investors think about the stock.

Trading NFLX Earnings With Leveraged ETFs

NFLX routinely sees major price swings on earnings, with moves of 5-15% not uncommon. Direxion's Single Stock Daily Leveraged & Inverse ETFs let traders make the most of this volatility or protect existing positions.

Bullish Strategy: NFXL

Direxion Daily NFLX Bull 2X Shares (NFXL) allows traders to double their bet on Netflix gains. NFXL seeks daily investment results, before fees and expenses, of 200% of the performance of NFLX.

• Targets 200% of NFLX's daily performance
  • When Netflix rises 1%, NFXL aims for a 2% gain (before fees)
  • When Netflix falls 1%, NFXL typically drops 2% (before fees)
• Ideal for traders expecting strong subscriber numbers or upbeat management commentary
• Entertainment stocks often see outsized moves on quarterly results
• Average daily volume: 249,000 shares
• Built for active traders who monitor positions closely

Bearish Approach: NFXS

Direxion Daily NFLX Bear 1X Shares (NFXS) provides inverse exposure to Netflix without requiring short-selling*. This feature helps traders in retirement accounts where IRA and 401(k) regulations prohibit traditional shorting. NFXS seeks daily investment results, before fees and expenses, of -100% of the performance of NFXL.

• Delivers inverse (-1X) daily performance compared to NFLX
  • When Netflix drops 1%, NFXS aims for a 1% gain (before fees)
  • When Netflix rises 1%, NFXS typically falls 1% (before fees)
• Works for traders worried about valuation or competition eating into Netflix's business
• Enables retirement account holders to take bearish positions
• Average daily volume: 152,000 shares

Both NFXL and NFXS reset exposure daily and work best as short-term trading vehicles, not buy-and-hold investments. These products require active oversight and are designed for traders who understand leverage effects and daily rebalancing mechanics.

Netflix's position as the streaming leader and history of earnings volatility create interesting setups for prepared traders. These leveraged ETFs give you the right tools to play the expected price action around July 17th's report.

*Short-selling is a trading strategy where investors borrow shares and sell them, hoping the stock price will fall.

To learn more about all Direxion's Single Stock Leveraged and Inverse ETFS, Click Here

Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in NFLX.

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing.  A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares.  To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com.  A Fund’s prospectus and summary prospectus should be read carefully before investing.

The Funds have derived all disclosures contained in this document regarding Netflix, Inc. from publicly available documents. In connection with the offering of each Fund’s securities, neither the Funds, the Trust, nor the Adviser or any of its respective affiliates has participated in the preparation of such documents. Neither the Funds, the Trust nor the Adviser or any of its respective affiliates makes any representation that such publicly available documents or any other publicly available information regarding Netflix, Inc. is accurate or complete. Furthermore, the Funds cannot give any assurance that all events occurring prior to the date hereof (including events that would affect the accuracy or completeness of the publicly available documents described above) that would affect the trading price of Netflix, Inc. have been publicly disclosed. Subsequent disclosure of any such events or the disclosure of or failure to disclose material future events concerning Netflix, Inc. could affect the value of a Fund’s investments with respect to Netflix, Inc. and therefore the value of the Funds.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.

Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with NFLX and may increase the volatility of the Bull Fund.

Daily Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with NFLX and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to NFLX is impacted by NFLX’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to NFLX at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to NFLX increases on days when NFLX is volatile near the close of the trading day.

Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with NFLX and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to NFLX is impacted by NFLX’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to NFLX at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to NFLX increases on days when NFLX is volatile near the close of the trading day.

Netflix, Inc. Investing Risk – Netflix, Inc. faces risks related to maintaining and expanding membership for its streaming services; competition in the entertainment video market; unforeseen costs or liability in connection with content that is acquired, produced, licensed and/or distributed through its service, among other risks.

Entertainment Industry Risk — Companies in the entertainment industry may be impacted by the high costs of research and development of new content and services in an effort to stay relevant in a highly competitive industry, and entertainment products may face a risk of rapid obsolescence.

Communication Services Sector Risk — The communication services sector may be dominated by a small number of companies which may lead to additional volatility in the sector. Communication services companies are particularly vulnerable to the potential obsolescence of products and services due to technological advances and the innovation of competitors.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily NFLX Bear 1X Shares, Shorting or Inverse Risk.  Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

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