Watch for These ETFs Following Amazon’s Q3 Earnings Miss

Amazon shares fell as much as 9% in after-hours trading on Thursday after the online retailer missed on third-quarter earnings expectations. It was down 2.4% in early morning trading on Friday. Investors should keep Amazon-heavy ETFs on their radars for possible buy-the-dip opportunities, especially if holiday shopping online turns out stronger than expected.

Revenue grew by 24% for the quarter, which spoke to the strength of the one-day shipping option. Amazon also highlighted increased sales via its cloud business and advertising sales.

Amazon’s earnings results per CNBC:

  • EPS: $4.23 vs. $4.62, according to analysts surveyed by Refinitiv
  • Revenue: $70 billion vs. $68.8 billion, according to analysts surveyed by Refinitiv
  • AWS: $9 billion vs. $9.1 billion, according to analysts surveyed by FactSet

“Customers are buying more often and they’re buying more products,” said Amazon CFO Brian Olsavsky during a call with reporters.

“Customers love the transition of Prime from two days to one day — they’ve already ordered billions of items with free one-day delivery this year. It’s a big investment, and it’s the right long-term decision for customers,” Bezos said.

Looking ahead, however, the online retailer said “fourth-quarter revenue guidance came in between $80.0 billion to $86.5 billion, far below the street’s average estimate of $87.4 billion, indicating the all-important holiday shopping season may be underwhelming.”

Watch: Amazon Plunges on Earnings. Here’s Why…

Watch for these three ETFs:

  1. 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. Retailers may include U.S. and non-U.S. companies. To be eligible, retailers must: be classified as an online retailer, an e-commerce retailer, or an internet or direct marketing retailer, according to standard industry classification systems; have a market capitalization of at least $500 million; have a six-month daily average value traded of at least $1 million; and meet other requirements.
  2. 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.
  3. 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.

For more market trends, visit ETF Trends.