Quarterly results from Netflix (NasdaqGS: NFLX) after Monday’s closing bell could move exchange traded funds (ETFs) that invest in Internet stocks early this week.
Netflix accounts for roughly 4% of First Trust Dow Jones Internet Index Fund (NYSEArca: FDN) and PowerShares Nasdaq Internet Portfolio (NasdaqGM: PNQI).
Wall Street is expecting a strong quarter from Netflix, which ended 2010 with about 20 million subscribers to its DVD-rental service. The company also streams video over the Internet.
Netflix is a Wall Street darling but its growth is attracting competition from Amazon (NasdaqGS: AMZN) and others.
Jefferies analysts in a Netflix earnings outlook said they expect growth to come in at the high end of expectations. However, the “plethora of content streaming deals signed recently” compelled the analysts to cut their profit estimates for 2012 and beyond.