Though Netflix (NFLX - Free Report), the first in the FANG group to report its Q2 earnings on Jul 16, disappointed investors with weaker-than-expected subscriber growth, the craze for these stocks surged on blockbuster earnings results from Google parent Alphabet (GOOGL - Free Report). Additionally, the other two FANG stocks — Facebook (F - Free Report) B) and Amazon (AMZN - Free Report) — are also set to report robust earnings in Q2.  

Investors should note that the three of the FANGs are in a race to reach a trillion dollar market cap.

Quick Insights Into Alphabet Result

The Internet behemoth delighted investors, topping both revenue and earnings estimates by a wide margin. Earnings per share came in at $11.75, trumping the Zacks Consensus Estimate of $9.45 and revenues of $27.9 billion edged past the estimate of $25.64 billion.

Following the earnings announcement, shares of GOOGL jumped to new highs. Currently, Alphabet carries a Zacks Rank #3 (Hold) and has a VGM Score of B. It falls under a top-ranked Zacks industry (top 39%), suggesting continued outperformance (read: Alphabet Touches New Highs on Blockbuster Q2: ETFs to Tap).

Facebook

Facebook is expected to release its earnings report on Jul 25 after market close. It has a Zacks Rank #2 (Buy) and an Earnings ESP of -0.64%. According to our methodology, a Zacks Rank #1 (Strong Buy), 2 or 3, when combined with a positive Earnings ESP, increases our chances of predicting an earnings beat, while a Zacks Rank #4 or 5 (Sell-rated) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The social media giant witnessed positive earnings estimate revision of a couple of cents over the past month for the to-be-reported quarter representing year-over-year growth of 32.58%. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator for the stock. Facebook has delivered positive earnings surprises in the last four quarters, with an average beat of 18.89%.

Revenues are also expected to grow 44.03% for the quarter. The stock has a top Growth and Momentum Style Score of A each and belongs to the top-ranked Zacks industry in the top 39%. Given solid fundamentals, the shares of FB are firing on all cylinders scaling new heights ahead of its earnings (read: ETFs to Tap Facebook's New Highs Ahead of Q2 Earnings).

Amazon

Amazon, slated to report on Jul 26 after market close, has a Zacks Rank #2 and an Earnings ESP of +12.85%. Though the stock saw negative earnings estimate revision of a penny over the past 30 days for the second quarter, the Zacks Consensus Estimate represents a whopping year-over-year increase of 522.50%. Amazon’s earnings surprise history is also impressive, with a positive earnings surprise of 1,303.34% on average for the last four quarters.

Additionally, the company is expected to report revenues of $53.45 billion, up 40.82% from the year-ago quarter. However, the stock has a dismal VGM Score of D and falls under the bottom-ranked Zacks industry (bottom 30%). The online e-commerce behemoth has topped $900 billion in its market capitalization on Jul 18 for the first time and is currently trading below this level.

Hot ETFs

Given this, ETFs having the largest exposure to FANGs have been burning hot with most of them hitting new highs lately. We have highlighted the ones that have a top Zacks Rank #1 (Strong Buy) or 2 (Buy), suggesting their continued outperformance.

PowerShares NASDAQ Internet Portfolio (PNQI - Free Report): This fund accounts for nearly 8% share in each of the FANG stocks and carries a Zacks ETF Rank #1.

First Trust Dow Jones Internet Index Fund (FDN - Free Report): This ETF allocates a combined 30% share in FANG stocks and has a Zacks ETF Rank #1.

ERSHARES Entrepreneur 30 ETF (ENTR - Free Report): This ETF has 24.3% allocation in FANGs.

O’Shares Global Internet Giants ETF (OGIG - Free Report): This fund makes up for 23.4% share in FANGs (read: 5 Successful New ETFs of Q2).

Invesco QQQ (QQQ - Free Report): This fund makes up for 22.3% share in FANGs and has a Zacks ETF Rank #1 (read: 5 Undervalued Tech ETFs at Investors' Disposal).

iShares North American Tech ETF (IGM - Free Report): This product accounts for about 21.8% in FANG group and has a Zacks ETF Rank #1.

iShares Evolved U.S. Technology ETF (IETC - Free Report): This fund accounts for 20.7% share in FANG stocks.