Amazon's (AMZN) incredible strength in its Prime, cloud computing and e-commerce businesses will have the spotlight shone on them as the company's first-quarter results are expected to show largely what they've demonstrated in the past -- win at all costs, short-term profits be damned.
"As far as we are concerned, this push to invest serves as positive demand indicators across its consumer and enterprise-facing businesses," Credit Suisse analyst Stephen Ju wrote in a recent investor note.
The company is expanding its fulfillment centers -- including a new one in New Jersey along with several more coming in the Garden State.
It's also working on expanding its Amazon Web Services (AWS) business, which continues to be the leader in getting businesses to the cloud, something that has continued to positively surprise analysts.
"If AWS's appetite to expand into SaaS develops further, it could mean there is a new potential consolidator of SaaS companies," Pacific Crest Securities analyst Brent Bracelin wrote in a recent investor note. "Stay tuned."
Investors will also be looking to hear if Amazon has to anything to say about its expanding hardware business, including the success of the Amazon Echo, which RBC Capital Markets analyst Mark Mahaney thinks could lead to an additional $10 billion in revenue for the company by 2020.
Analysts surveyed by Yahoo! Finance expect the company to earn $1.13 a share on $35.31 billion in revenue for the quarter.
Over the past 12 months, shares of Amazon have gained nearly 43%, compared to the near 11% gain in the S&P 500.
Here are five ETFs that may benefit if investors like Amazon's first-quarter results.
VanEck Vectors Retail ETF
The $73.5 million VanEck Vectors Retail ETF (RTH) has Amazon make up 17.15% of its portfolio, charging investors an expense ratio of 0.35%.
Credit Suisse's Ju, who has an outperform rating and a $1,050 price target, notes that the thesis for owning Amazon shares is built on three trends, ones that aren't likely to stop anytime soon:
1) re-establishment of e-commerce segment operating margin expansion as Amazon grows into its larger infrastructure, 2) ongoing margin benefit due to shipping loss moderation, and 3) upward bias to AWS revenue forecasts and likely more moderate deceleration path as suggested by ongoing capital intensity in the business.
Consumer Discretionary Select Sector SPDR Fund
The $12.16 billion Consumer Discretionary Select Sector SPDR Fund (XLY) has Amazon make up 14.38% of its portfolio, charging investors an expense ratio of 0.15%.
Loop Capital Markets analyst Blake Harper highlighted the importance of Amazon Prime Now -- Amazon's two-hour and under delivery service -- as it competes with the likes of Grubhub (GRUB) and other delivery services.
"We see Prime Now adoption and logistical success at delivering orders within one or two hours as a critical blueprint the company will likely follow for the rest of its own retail sales and Fulfillment by Amazon (FBA) services," Harper wrote to investors. "Faster delivery has been a key competitive advantage of Amazon over other e-commerce players and we see its Prime Now delivery service as a 'tip-of-the-spear' of its future delivery options."
Loop Capital has a buy rating and a $1,100 price target on Amazon shares.
Vanguard Consumer Discretionary ETF
The $2.17 billion Vanguard Consumer Discretionary ETF (VCR) has Amazon make up 11.65% of its portfolio, charging investors an expense ratio of 0.12%.
Pacific Crest's Bracelin is impressed with AWS's move towards adding more IT tools, including in-memory database caching (DAX: Dynamo DB Accelerator) to new software development tools (AWS CodeStar). But the biggest trend is towards offering more software-as-a-service tie-ups.
Fidelity MSCI Consumer Discretionary Index ETF
The $268.6 million Fidelity MSCI Consumer Discretionary Index ETF (FDIS) has Amazon make up 11.64% of its portfolio, charging investors an expense ratio of 0.08%.
iShares U.S. Consumer Services ETF
The $657.4 million iShares U.S. Consumer Services ETF (IYC) has Amazon make up 11.52% of its portfolio, charging investors an expense ratio of 0.43%.