Trade Amazon’s Profitable Web Services with WEBL
Amazon, in large part, can thank much of its success in web services. Traders who literally want to take advantage of this strength can play the Direxion Daily Dow Jones Internet Bull 3X Actions (WEBL).
At around 9.5%, Amazon includes WEBL’s largest holdings, followed by Facebook and Paypal, respectively. Merchants can play on the strength of Amazon, which it derives from its web services, including cloud computing.
“Each year since at least 2014, more than half of Amazon’s operating profit has come from the cloud division of online retailer, Amazon Web Services, which provides online services and tools that software developers can put together. to run websites and apps, ”CNBC reports. noted.
“It’s an impressive company in absolute dollar terms, not just percentage: AWS ended 2020 with $ 13 billion in operating revenue, which helped Amazon report total net income of $ 21 billion for the year, ”the report adds. “No wonder Amazon picked AWS chief Andy Jassy for 15 years as CEO when Jeff Bezos stepped down earlier this year.”
WEBL seeks daily investment results, before fees and expenses, of 300% of the daily performance of the Dow Jones Internet Composite Index. The fund, under normal circumstances, invests at least 80% of its net assets (plus borrowings for investment purposes) in financial instruments that track the index and other financial instruments that provide daily exposure to effect. of leverage to the index or to ETFs that track the index.
WEBL is up 43% while Amazon stock is up 7% for the year. When you juxtapose the two lines in the same chart, the movements of the two appear similar.
Looking for a larger tech game?
Traders looking for something broader as opposed to a niche web game could use the Direxion Daily Technology Bull 3X ETF (TECL). Being bullish on technology hasn’t hurt TECL traders this year as the fund is up 65%.
With its triple leverage like WEBL, TECL is definitely not for the faint of heart. The fund seeks daily investment results, before fees and expenses, of 300% of the daily performance of the Technology Select Sector index.
The fund, which has grown by more than 100% in the past 12 months, invests at least 80% of its net assets (plus borrowings for investment purposes) in financial instruments, such as swap agreements and index securities, ETFs that track the index, and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index includes national companies in the technology sector.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.