Amazon Coming Back Strong, Couple Of ETFs To Think About (AMZN, RTH, HHH)
Amazon.com (NASDAQ: AMZN) reported earnings after the bell yesterday that beat Wall Street estimates, but the stock was punished in after hours, losing nearly $7.
Well Amazon is coming back in a major way this morning, now down only 47 cents from yesterday's close, and I would not be surprised to see it turn positive.
To capture some of the gains from Amazon today, investors may want to look at a couple of ETFs which count Amazon among their biggest holdings.
Retail HOLDRs ETF (NYSE: RTH) has Amazon as its largest component, some 12% of the fund. Here's a list of RTH's top holdings, but it's quite clear that Amazon is the major driver of this ETF, and any strength should benefit RTH.
In addition to holding the tech titan, shareholders get a liquid way to hold some other strong retail names, as it appears that the American consumer is finally starting to come out of hibernation and spend a little coin again.
Internet HOLDRs ETF (NYSE: HHH) is another way to benefit from Amazon's potential today, as it is also a major holder of shares.
On the other hand, should Amazon start to weaken again throughout the day, the opposite (shorting these ETFs) would also provide exposure to Amazon without having to watch the wild swings in the stock.
