Disappointing quarterly results from Amazon (NasdaqGS: AMZN) will weigh on retail exchange traded funds (ETFs) on Wednesday as the stock lost 1% in premarket trading.
“Results well exceeded [on the]top line but disappointed on margins,” said Evercore Partners analysts. Amazon also missed on earnings in the latest quarter.
At Deutsche Bank, analysts said they remain buyers of Amazon “particularly as the company looks to reinvest in incremental tech/fulfillment capacity to accommodate robust unit growth in the business,” according to a research note.
“Amazon’s first-quarter results were ahead of expectations on revenues but were shy on profits, yet the 51% unit growth nicely exceeded expectations,” they wrote. “While this growth was the fastest since 2000, the bigger theme seems to be that Amazon is seeing strength from its Prime service globally and now Kindle in the U.S.”
Amazon is a holding in PowerShares QQQ (NasdaqGM: QQQ) as well as ETFs tracking the retail and Internet sectors. [Amazon to Set Pace for Retail ETFs.]
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.