Direxion's Netflix bull and inverse ETFs target 2x and 1x daily moves
Netflix sits nearly 44% below its 52-week high, and Deutsche Bank's Bryan Kraft upgraded the stock to buy while cutting his price target to $95 from $100.
Direxion’s two Netflix funds trade the same drawdown at unequal leverage, and their labels stop at the multiple: the Direxion Daily NFLX Bull 2X Shares (NFXL) aim for 200% of the stock’s daily return, while the Direxion Daily NFLX Bear 1X Shares (NFXS) target the inverse of each session at a single multiple, leaving the geared short half as potent as the geared long. The pair wraps a company that had shed roughly a quarter of its value this year and, as of Sept. 29, sat nearly 44% below its 52-week high, according to ETF Trends.
Both targets reset daily, which is the detail that governs behavior: held past a session, each fund compounds the underlying’s day-by-day moves rather than delivering a flat multiple of the stock’s decline over the period. The labels describe a day of Netflix, not the year to date.
Deutsche Bank analyst Bryan Kraft stepped into that drawdown with a buy rating and a lower price target, upgrading Netflix from hold to buy on Tuesday while trimming his target to $95 from $100; the rating and the target moved in opposite directions, and even the reduced figure still implies nearly 40% upside. Kraft’s case is that investors are watching the wrong geography: U.S. time spent gets the attention, he argues, while international metrics and a wide addressable market go discounted. More than 60% of production now sits outside the United States, which he reads as evidence of an advantage in international production that should let Netflix hold its global lead.
Valuation carries the argument: Netflix trades at 18x Deutsche Bank’s 2027 estimated earnings, against roughly 40x forward EPS in June 2025 when the shares peaked—a multiple Kraft says the bank never considered reasonable for a company whose growth outlook was decelerating. At 18x, he writes, that outlook is underpriced, leaving room to expand into the low-to-mid 20s on top of 23% earnings growth in 2027. He also dismisses the AI overreaction: a company built on technology should apply it to content production, personalization and ad measurement more effectively than streamers still reprogramming their organizations. Even at $95, by the report’s math, the implied gain leaves the shares short of the 52-week high they are nearly 44% below.
Deutsche Bank also appears on the product side of this market: this publication covered the firm's September addition of SHYL, a short-duration high-yield fund built on HYLB's Solactive index, putting the bank in both ETF research and ETF issuance.
Neither NFXL’s nor NFXS’s assets or flows appear in the coverage, and for a daily-reset pair tracking a stock this far below its peak, those figures would say more about how the drawdown is being traded than any sell-side rating does. Whether the money has moved to the bull leg or the bear one is the figure to watch.
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