2023’s holiday shopping numbers should give Amazon bulls enough good news to digest, but the online retail giant’s focus on artificial intelligence (AI) should provide even more bullish vibes for its stock.
As reported by CNN, the continued trend of online shopping during the holidays was evident in Amazon’s final numbers. As mentioned by the CNN report, it was last year’s holiday shopping that “powered strong revenue growth for Amazon last quarter.
Amazon “reported revenue of $170 billion for its quarter ending in December, beating Wall Street’s estimates and growing 14% compared to the same period last year.” It was just what the stock needed as most equities stumbled out of the gate in 2024, but positive earnings was more than enough to reinvigorate the stock price. Amazon is up 24% within the last few months.
As mentioned, bulls should also be excited about the company’s focus on AI, which is what most of Amazon’s big tech peers are also doing. That should give Amazon a strong growth mechanism moving forward as the company announced the inclusion of AI with its hopping experience.
“And the company is now looking to give customers a new way to shop, while signaling to investors that it is doubling down on artificial intelligence,” the CNN report added, noting that Amazon “announced it was adding an AI-powered shopping assistant dubbed ‘Rufus’ to its e-commerce store.”
3 Ways to Play Amazon
If Amazon’s stock price keeps on maintaining its upward trajectory, then traders will want exposure tothe Direxion Daily AMZN Bull 1.5X Shares (AMZU). Overall, the fund seeks 150% exposure to Amazon stock, giving bullish traders added leverage to extract more gains from their convictions.
Additionally, Amazon comprises about 6.15% (as of February 2) of the Direxion Daily Dow Jones Internet Bull 3X Shares (WEBL), which gives traders a more broad play on similar internet-driven companies. WEBL seeks daily investment results equal to 300% of the daily performance of the Dow Jones Internet Composite Index, which includes companies that generate at least 50% of their annual sales/revenue from the internet.
For another play on Amazon as well as its other “Magnificent Seven” peers in big tech specifically, traders may want to look keeping the Direxion Daily Technology Bull 3X ETF (TECL) in their toolbox, especially if they want to maximize their profit potential. Per its fund description, TECL seeks daily investment results equal to 300% of the daily performance of the Technology Select Sector Index.
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