NEW YORK ( TheStreet) -- As technology companies continue to generate and hoard cash, some, like Amazon (AMZN - Get Report), are looking at acquiring others to broaden offerings paving the road to prosperity for the Internet HOLDRs (HHH), the Retail HOLDRs (RTH), and the PowerShares NASDAQ Internet (PNQI) exchange-traded funds.Amazon, which was sitting on cash and short-term securities of $5.9 billion at the end of September, has reached an agreement to buy Quidsi, owner of Diapers.com and Soap.com. Furthermore, the Seattle based online retailer recently bought Woot.com, a site that offers a daily discounted item and has agreed to purchase BuyVIP, a fashion site, which will expand its presence in Europe.
- Internet HOLDRs allocates 40.23% of its assets to Amazon, while also giving ample exposure to eBay(EBAY) and Yahoo!(YHOO - Get Report);
- Retail HOLDRs allocates 11.44% of its assets to Amazon and also includes Wal-Mart and Target in its top holdings;
- PowerShares NASDAQ Internet allocates 8.65% of its assets to Amazon and gives ample exposure to Google(GOOG - Get Report) and Chinese Internet search engine giant Baidu(BIDU - Get Report).