Amazon’s (NasdaqGS: AMZN) earnings miss after Tuesday’s closing bell is set to weigh on exchange traded funds (ETFs) for the retail and Internet sectors that count the stock as a top position.

Amazon shares fell in after-hours trade Tuesday after it reported first-quarter profit of 44 cents a share, while Wall Street was looking for 61 cents.

“Amazon’s margins are likely to remain under pressure given the 33%+ expansion in distribution center space, price promotions/free shipping and investments on new initiatives such as cloud computing and online video streaming,” wrote Jefferies analysts in an earnings preview.

“That said, revenue growth, not margin expansion has been the primary driver of earnings and stock price,” Jefferies said, adding the company would take a hit from its exposure to Japan after the earthquake.

Amazon is a top holding of Retail HOLDRS (AMEX: RTH) and First Trust Dow Jones Internet Index (NYSEArca: FDN).

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