Amazon Adding a Cloud Computing Office in Microsoft’s Hometown

Cloud computing was a major beneficiary of the coronavirus pandemic as more businesses relied on web-based services amid social distancing and lockdown restrictions. Now, Amazon is taking its cloud services to another level—namely another state where one of its rivals is based.

Amazon will be signing a lease agreement for a 111,000-square-foot office in Redmond, Washington where Microsoft resides.

“The office space is located in Redmond Town Center, a mixed-use shopping complex that includes a number of big box stores and hotels, as well as Microsoft offices,” a CNBC report noted. “The facility will house more than 600 employees, including some of Amazon Web Services’ tech and engineering teams. Amazon said the office space is slated to open in 2021.”

The impact of cloud computing can be felt as more companies are utilizing the technology at a rapid pace to power their core businesses. One way exchange-traded fund (ETF) investors can take advantage of trend is via the Global X Cloud Computing ETF (Nasdaq: CLOU).

Seeking to track the Indxx Global Cloud Computing Index, the fund holds a basket of companies that potentially stand to benefit from the continuing proliferation of cloud computing technology and services. The cloud computing industry refers to companies that (i) license and deliver software over the internet on a subscription basis (SaaS), (ii) provide a platform for creating software applications which are delivered over the internet (PaaS), (iii) provide virtualized computing infrastructure over the internet (IaaS), (iv) own and manage facilities customers use to store data and servers, including data center Real Estate Investment Trusts (REITs), and/or (v) manufacture or distribution infrastructure and/or hardware components used in cloud and edge computing activities.

Additionally, here are three ETFs to consider with Amazon exposure:

  1. Consumer Discret Sel Sect SPDR ETF (NYSEArca: XLY): seeks investment results that correspond to the price and yield performance of publicly traded equity securities of companies in the Consumer Discretionary Select Sector Index. The index includes securities of companies from the following industries: retail; hotels, restaurants and leisure; textiles, apparel, and luxury goods; household durables; automobiles; auto components; distributors; leisure products; and diversified consumer services.
  2. ProShares Online Retail ETF (NYSEArca: ONLN): seeks investment results, before fees and expenses, that track the performance of the ProShares Online Retail Index. The index tracks retailers that principally sell online or through other non-store channels. The index uses a modified market-capitalization weighted approach, is rebalanced monthly and is reconstituted annually.
  3. Fidelity MSCI Consumer Discretionary Index ETF (FDIS): seeks to provide investment returns that correspond generally to the performance of the MSCI USA IMI Consumer Discretionary Index. The index represents the performance of the consumer discretionary sector in the U.S. equity market.

For more market trends, visit ETF Trends.