With shares of Amazon (AMZN) up 28% over the past month, it’s safe to say investors are at peace with the company’s massive artificial intelligence (AI) spending plans.
Read more: Big Tech’s AI Bets Pay Off: How to Play Latest Earnings
That could spell opportunity with the Direxion Daily AMZN Bull 2X Shares (AMZU), which is designed to deliver 200% of the daily performance of Amazon stock. Earlier this year, Amazon announced 2026 AI spending plans of $200 billion. While the initial reaction wasn’t positive, that tune has clearly changed for the better.
The stock’s new-found AI-related momentum could signal occasional opportunity with AMZU and with multiple catalysts at that. For example, in a recent CNBC interview, Amazon CEO Andy Jassy said AI is likely to be transformative when it comes to customer experiences. That’s noteworthy, because Amazon is the largest consumer discretionary company.
AI Could Be Huge for Amazon
Amazon investors and traders acquainted with AMZU know that Amazon Web Services (AWS) is one of the company’s cash cows. Experts expect it to generate $166 billion in sales this year. However, underscoring the potential validity of the company’s sizable AI investments, Jassy noted that AI is growing faster than AWS did in its early days.
“After the first three years of this incarnation of AI, our run rate is over $15 billion — 260 times what it was the first three years of AWS,” the Amazon CEO said in the CNBC interview.
It’s worth remembering that Amazon has been down this road before, when AWS was in its infancy. The company has to bet big to move the needle, and that’s what it’s doing with AI. Like any other hyperscaler, Amazon is allocating capital prior to monetization. While that’s common practice in the business world, it unnerved some investors earlier this year. Those headwinds are waning. If Amazon provides positive updates on those monetization efforts over the remainder of 2026, those could be ideal times for active traders to consider AMZU.
“When your revenue growth starts to catch up with the capital expenditure growth, you actually end up really liking the operating margin, the free cash flow, and the [return on invested capital],″ Jassy told CNBC.
For traders preparing for Amazon AI disappointment, the Direxion Daily AMZN Bear 1X Shares (AMZD) – AMZU’s bearish cousin – may be worth examining. That is an inverse though not leveraged ETF.
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