Amazon Earnings Fuel Surge in Leveraged ETFs

Amazon's blowout Q2 earnings led to a 17% surge in its stock price, which in turn drove up the value of three ETFs tied to Amazon. The Direxion Daily AMZN Bull 2X Shares (AMZU) surged 47% in the past week, more than doubling Amazon's own move.

Another ETF, Roundhill AMZN WeeklyPay (AMZW), offers weekly income and capped upside, limiting its gains to 27% over the same period. In contrast, YieldMax AMZN Option Income Strategy (AMZY) has a covered-call structure that surrendered gains above its strike price, resulting in an 18% weekly return.

Amazon's earnings report showed EPS of $5.75 against a consensus of $1.82, with revenue of $200.6 billion, up 20% year over year. The AI cycle at AWS was a key driver of growth, with the unit growing 37% to $42 billion at a 39% operating margin.