4 ETFs to Watch Following Amazon’s Q4 Earnings

Amazon is the latest company to don the trillion-dollar market capitalization “members only” jacket after it toppled fourth-quarter earnings expectations on Thursday. Shares of the online retail giant jumped as high as 11% in extended trading hours following the announcement, putting ETFs with heavy holdings of Amazon watch.

Fourth-quarter earnings results as reported by CNBC:

  • Earnings per share: $6.47 per share vs. expectations of $4.03 per share, according to analysts surveyed by Refinitiv
  • Revenue: $87.44 billion vs. expectations of $86.02 billion, per Refinitiv
  • Amazon Web Services: $9.95 billion vs. expectations of $9.81 billion, according to FactSet

One major revenue driver was Amazon’s cloud services. According to a CNBC report, the company’s “cloud business picked up $9.95 billion in revenue in the fourth quarter, growing faster than analysts had expected. Amazon Web Services revenue grew 34.0% in the quarter from a year earlier, Amazon said in a statement Thursday.”

Here are 3 ETFs to consider with heavy Amazon holdings:

  1. 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.
  2. 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.
  3. 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.

One leveraged ETF for traders to consider:

  1. A broad, leveraged trade to also consider is the Direxion Daily Technology Bull 3X ETF (NYSEArca: TECL). TECL seeks daily investment results of 300% of the daily performance of the Technology Select Sector Index, which includes domestic companies from the technology sector.

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