Amazon clears $3 trillion as three AMZN ETFs surge

Amazon.com shares rose 23 percent in a week to a $3 trillion market value after blowout Q2 results, lifting three single-stock ETFs.

"AWS is booming, growing 36.7 percent year-over-year in Q2 — our fastest growth in 18 quarters — and our AI and Chips businesses each eclipsed run rates of more than $25 billion," Andy Jassy, chief executive officer at Amazon, said.

Amazon posted earnings per share of $5.75 against a consensus of $1.82, on revenue of $200.6 billion, up 20 percent from a year earlier. AWS grew 37 percent to $42 billion at a 39 percent operating margin, its fastest pace in 18 quarters and about $2 billion above expectations, while advertising revenue rose 26 percent to $20 billion. Net income surged 245 percent to $62.6 billion, though that included about $53.4 billion in pre-tax other income from investments such as Anthropic; excluding that, operating profit rose 43 percent to $27.5 billion at a 13.7 percent margin. The company guided third-quarter net sales of $197 billion to $202 billion and lifted 2026 capital spending to about $220 billion.

The three ETFs built on Amazon — Direxion Daily AMZN Bull 2X Shares (AMZU), Roundhill AMZN WeeklyPay (AMZW) and YieldMax AMZN Option Income Strategy (AMZY) — each captured the rally differently, exposing how single-stock fund structures shape returns.

AMZU, a 2x daily leveraged single-stock ETF, delivered the biggest gain, rising 47 percent over the past week and 9.4 percent on Aug. 3 as it reset daily to twice Amazon's move. The fund is up 33 percent over the trailing year, roughly matching Amazon's 32 percent gain, though volatility drag erodes leveraged returns in choppy sessions.

AMZW, which layers a weekly-distribution options overlay on Amazon exposure, rose 27 percent over the past week. The structure trades upside for income, capping how much of a rally flows through to share price while paying out collected premium as distributions. The fund is down about half a percent year to date and 11 percent over the past year, as distributions can include return of capital and weigh on net asset value.

AMZY, a synthetic covered-call fund generating monthly income, gained 18 percent over the trailing week, less than Amazon's 23 percent move. Selling calls each cycle funds distributions but surrenders participation above the strike price during sharp rallies. The fund is down 11 percent year to date.

The results also address skepticism about whether heavy AI investment is paying off, with AWS's acceleration and expanding margins showing demand for AI and cloud infrastructure remains strong. Amazon's gross margin rose to 52.3 percent, an eight-quarter high, as high-margin AWS and advertising grew faster than retail.

The divergence shows how single-stock ETFs convert the same earnings report into different payoffs. Amazon's results capped a major week of Big Tech earnings, with Microsoft reporting similarly strong results buoyed by its AI cloud business while Meta struggled as free cash flow weakened and its revenue forecast underwhelmed.

Amazon's market value crossed $3 trillion for the first time, with shares closing at $271.58 on July 31 after a 15 percent gain. The stock trades at about 23 times forward earnings, according to Seeking Alpha data.

This article is for informational purposes only and does not constitute investment advice.