This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Three ETFs To Play Amazon's Buying Binge

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 and Furthermore, the Seattle based online retailer recently bought, a site that offers a daily discounted item and has agreed to purchase BuyVIP, a fashion site, which will expand its presence in Europe.

The acquisition of Quidsi will allow Amazon to penetrate a market of parents who have young children that use diapers and offers the ability to have this necessity delivered directly to the consumers' front door. Additionally, the acquisition will take out a competitor in the e-commerce space making Amazon that much stronger.

At the end of the day, it appears that Amazon is utilizing its cash reserves to acquire firms, lessen competition, strengthen its market share in the e-commerce space and compete with retail giants Wal-Mart (WMT - Get Report) and Target (TGT - Get Report).

Here are the ways to play Amazon:
  • 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).

Written by Kevin Grewal of SmartStops in Houston.

Grewal has no positions in the securities mentioned.
Kevin Grewal is the founder, editor and publisher of ETF Tutor and serves as the editor at , where he focuses on mitigating risk and implementing exit strategies to preserve equity. Additionally, he is the editor at The ETF Institute, which is the only independent organization providing financial professionals with certification, education, and training pertaining to exchange-traded funds (ETFs). Prior to this, Grewal was a quantitative analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds a bachelor's degree from the University of California along with a MBA from the California State University, Fullerton.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
RTH $76.05 -0.81%
PNQI $74.77 -0.51%
AMZN $659.05 -1.80%
BIDU $175.21 -1.20%
GOOG $701.26 0.80%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,048.02 -3.10 -0.15%
NASDAQ 4,712.6790 -12.96 -0.27%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs