Google Q1 2013 Earnings Up 31%; ETFs For This Holding And Its Close Cousins

by: Sandy Cliff Research

Google (NASDAQ:GOOG) recently reported "consolidated revenues of $13.97 billion for the quarter ended March 31, 2013, an increase of 31% compared with the first quarter of 2012."

While Yahoo (NASDAQ:YHOO) on April 16, 2013, under new CEO Marissa Mayer, reported still-stalled revenues at "$1,140 million for the first quarter of 2013, a 7 percent decrease from the first quarter of 2012 . . [with] Revenue excluding traffic acquisition costs . . . flat compared to the first quarter of 2012."

Amazon (NASDAQ:AMZN), the spendthrift of the three, which nevertheless dominates online retail, has announced it will hold a conference call to discuss its first-quarter 2013 financial results on April 25, 2013.

GOOG earnings were above Wall Street consensus, but missed analysts' estimates, but then there is the new Google Glass release coming soon and the continuing uptick in ad revenues. YHOO earnings beat estimates, but analysts concur that core problems remain with this Internet veteran. The Q1 2013 earnings report on AMZN, an integral part of our online shopping lives, may not be a surprise, but it will be full of interesting details.

For those investors impressed by GOOG's latest quarterly report and who are hedging their bets on all three of these Internet, cloud storage, advertising, retail/media players, here is a listing of target ETFs that cover all three. Percentage holdings coverage:

First Trust Dow Jones Internet IndexSM Fund (NYSEARCA:FDN):

  • Google 9.74%
  • Amazon 7.71%
  • Yahoo 4.55%

PowerShares NASDAQ Internet Portfolio (NASDAQ:PNQI):

  • Google 7.76%
  • Amazon 8.04%
  • Yahoo 4.42%

Powershares NASDAQ-100 Index Tracking Stock® (NASDAQ:QQQ):

  • Google 6.46%
  • Amazon 3.75%
  • Yahoo 0.87%

and covering two of these three: iShares Russell Top 200 Growth Index Fund (NYSEARCA:IWY):

  • Google 3.72%
  • Amazon 1.76%

Vanguard Information Technology ETF (NYSEARCA:VGT):

  • Google 6.42%
  • Yahoo 0.77%

Specific Amazon-heavy ETFs include Market Vectors Retail (NYSEARCA:RTH) with 8.45% of assets and the Consumer Discretionary Select Sector SPDR® Fund (NYSEARCA:XLY) with 5.95% of its assets in AMZN.

A specific Yahoo-heavy ETF is the PowerShares Dynamic Media Portfolio (NYSEARCA:PBS) with 5.16% of holdings in YHOO and 4.51% in GOOG.


Google, Amazon and Yahoo are all at a critical juncture in their histories, with Yahoo being the most tentative. These three Internet powerhouses cover a wide swath from all aspects of tablet, mobile and desktop access to cloud storage to retail and media services.

The First Trust Dow Jones Internet IndexSM Fund, the PowerShares NASDAQ Internet Portfolio, and the PowerShares NASDAQ-100 Index Tracking Stock offer investors a diversified approach to three stocks and their competitors.

And for those investors eager to focus on just one of these three stocks, but are not inclined to invest specifically in the stock, the Market Vectors Retail, the Consumer Discretionary Select Sector SPDR® Fund, and the PowerShares Dynamic Media Portfolio provide attractive options.

Disclosure: I am long AMZN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.