Netflix may replace Tesla in the Mag 7 with strong performance and bullish outlook.

From Nasdaq: 2025-04-25 08:00:00

Shares of the Magnificent Seven (Mag 7) are under pressure this year, with NVIDIA, Apple, Alphabet, Amazon, Meta, Microsoft, and Tesla facing challenges from trade tensions, AI disruption, and demand fluctuations.

The Roundhill Magnificent Seven ETF (MAGS) has lost 16.7% this year, with Tesla shares down the most at 31.6%.

Netflix shares have surged 23.7% this year, following strong first-quarter results that beat earnings estimates but slightly missed on revenues.

Netflix offers a bullish outlook for the ongoing quarter, with analysts raising target prices and earnings estimates, signaling positive trends.

Tesla reported disappointing first-quarter results but saw a more than 5% jump in after-hours trading after CEO Elon Musk reaffirmed the company’s goals for robotaxis and affordable vehicles.

Netflix’s free cash flow increased by 24.5% year over year in Q1, highlighting its strong financial position and potential for growth.

In terms of valuation, Tesla’s forward P/E ratio is higher than Netflix’s, indicating that Netflix may be undervalued compared to Tesla.

Investors interested in Netflix may consider ETFs like NFLU, NFXL, FNGS, GGME, and FDN, which have significant exposure to Netflix stock.

For more insights and analysis on ETFs, investors can sign up for Zacks’ free Fund Newsletter for top news and performance updates.

This article was originally published on Zacks Investment Research and reflects the author’s views, not necessarily those of Nasdaq, Inc.



Read more at Nasdaq: Should Netflix be One of the Mag 7, Replacing Tesla? ETFs in Focus