Shares of Netflix (NasdaqGS: NFLX) surged 3.7% Wednesday on volume that was more than triple the daily average to touch an all-time high. News of a possible stock split, which make the now $671 stock more affordable drove Netflix higher yesterday.
“Shareholders set the stage for Netflix to split its stock by approving a proposal that will allow the board to increase the company’s outstanding stock to as many as 5 billion shares. The previous limit had been 170 million shares,” according to the Associated Press.
Even with its almost $41 billion market value, California-based Netflix is arguably under-represented in exchange traded funds. Just 13 ETFs feature the stock among their top 10 holdings, according to S&P Capital IQ data.
That leaves ETF beneficiaries of the stocks meteoric 52.5% 90-day jump, but a few funds are enjoying Netflix bumps. Perhaps a surprising beneficiary of Netflix’s bullishness has been the First Trust ISE Cloud Computing Index Fund (NasdaqGM: SKYY). [New Highs for the Cloud ETF]
Cloud computing refers to a mode of accessing digital information from the internet through web-based tools and applications, instead of directly connecting to a server. The desired data and software packages are stored in servers where a consumer can access them anywhere as long as one has access to the internet. It is SKYY’s somewhat loose interpretation of cloud computing companies that has driven the ETF’s stellar performance. [Tech Investors Love the Cloud]
That jargon may not sound like it is applicable to Netflix, at least not to tech novices, but the fact is Netflix is SKYY’s largest holding at a weight of nearly 6%. That is enough to have the ETF up 6% over the past three months.
The PowerShares NASDAQ Internet Portfolio (NasdaqGS: PNQI) is one of the other ETFs that has a Netflix weight of more than 5%, 5.22% at Tuesday’s close to be precise. That has helped power PNQI higher by 7% over the past 90 days.