By John Spence
Upbeat quarterly results from Amazon (NASDAQ:AMZN) juiced the stock Wednesday and some Internet and retail sector ETFs were along for the ride.
Amazon shares rallied more than 6% Wednesday afternoon to a new 52-week high. The company’s quarterly results “reflected strength on the top line combined with enormous investments,” said McAdams Wright Ragen analysts in a note.
“Management’s second-quarter guidance also assumes a continuation of the same investments in distribution capacity and digital,” they wrote. “Over time, we expect that margin performance should improve, but we agree that investors will be closely watching when the current investments will start to pay dividends.”
Amazon accounts for about 45% of Internet HOLDRS (NYSE:HHH), which gained nearly 3% at last check. The stock is also a large holding in First Trust Dow Jones Internet Index (NYSEARCA:FDN) and PowerShares Nasdaq Internet Portfolio (NASDAQ:PNQI).