Amazon ETFs Set to Surge on Q3 Earnings Beat

Unlike Microsoft (MSFT) and Meta Platform (META), Amazon AMZN reported stronger-than-expected third-quarter 2024 results. The online behemoth outpaced earnings and revenue estimates, driven by growth in its cloud computing and advertising businesses. It also guided upbeat revenues for the ongoing quarter.Shares of AMZN spiked as much as 5.7% in aftermarket hours on elevated volume. ETFs having a substantial allocation to this online behemoth are also set to soar. These include ProShares Online Retail ETF ONLN, Fidelity MSCI Consumer Discretionary Index ETF FDIS, Vanguard Consumer Discretionary ETF VCR, Consumer Discretionary Select Sector SPDR Fund XLY and VanEck Vectors Retail ETF RTH.The e-commerce giant reported earnings per share of $1.43, outpacing the Zacks Consensus Estimate of $1.14 and the year-ago earnings of 85 cents. Revenues grew 11% year over year to a record high of $158.9 billion and edged past the consensus estimate of $157.07 billion. New generative AI features in its cloud and e-commerce businesses spurred robust growth.Amazon’s cloud computing business — Amazon Web Services (“AWS”) — revenues soared 19% year over year to $27.5 billion (read: Cathie Wood Bets Big on Amazon Stock: Should You Buy ETFs?). CEO Andy Jassy said on the conference call that Amazon’s AI business, which is already growing by triple-digit percentages, would grow faster than the cloud business did at a comparable stage of evolution. Looking ahead to the festive season, Jassy expressed optimism about upcoming initiatives, including the company's NFL Black Friday game and Election Day coverage with Brian Williams on Prime Video, following what he described as their "biggest-ever Prime Big Deal Days" and the successful launch of new Kindle devices.Like other tech companies, Amazon has been ramping up investments in data centers, chips and the power needed for AI workloads. The world's largest online retailer expects revenues in the range of $181.5-$188.5 billion for the fourth quarter of 2024. The Zacks Consensus Estimate is pegged at $186.02 billion.ETFs to BuyProShares Online Retail ETF (ONLN)ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels and then zeros in on the companies that reshape the retail space. It tracks the ProShares Online Retail Index, holding 19 stocks in its basket. Amazon is the top firm, accounting for 23.9% of the portfolio.ProShares Online Retail ETF has amassed $90.7 million in its asset base and currently trades in a moderate volume of around 10,000 shares a day on average. It charges 58 bps in annual fees from investors. Fidelity MSCI Consumer Discretionary Index ETF (FDIS)Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 277 stocks in its basket. Of these, Amazon takes the top spot with a 21.9% share. Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.8 billion in its asset base while trading in a good volume of around 60,000 shares a day on average. It charges 8 bps in annual fees from investors and currently has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.Vanguard Consumer Discretionary ETF (VCR)Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 302 stocks in its basket. Of these, Amazon occupies the top position, with a 21.6% allocation. Broadline Retail takes the largest share at 24.6%, while automobile manufacturers, restaurants and home improvement retail round off the next three spots. VCR charges investors 10 bps in annual fees, while volume is moderate at nearly 40,000 shares a day. The product has managed about $5.8 billion in its asset base and currently carries a Zacks ETF Rank #3 with a Medium risk outlook.Consumer Discretionary Select Sector SPDR Fund (XLY)Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and most popular product in this space, with AUM of nearly $20.3 billion and an average daily volume of around 3 million shares. Holding 50 securities in its basket, Amazon takes the top spot with 22.9% of assets. Hotels, restaurants & leisure, broadline retail, specialty retail, and automobiles are the top four sectors with double-digit exposure each. Consumer Discretionary Select Sector SPDR Fund charges 9 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Consumer Discretionary ETF Hits New 52-Week High).VanEck Vectors Retail ETF (RTH)VanEck Vectors Retail ETF provides exposure to the 25 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Amazon takes the top position in the basket with a 20.2% share (read: Sector ETFs & Stocks to Gain On Upbeat September Jobs Data).VanEck Vectors Retail ETF has amassed $220.8 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 3,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report VanEck Retail ETF (RTH): ETF Research Reports Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports Fidelity MSCI Consumer Discretionary Index ETF (FDIS): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks